Producer Prices Post Biggest Drop in Three Years
U.S. producer prices recorded their largest drop in three years in April as gasoline and food costs tumbled.
U.S. producer prices recorded their largest drop in three years in April as gasoline and food costs tumbled.
U.S. wholesale prices rose only slightly in January after three straight declines, the latest sign that inflation is posing no threat. It means the Federal Reserve has room to keep interest rates at record lows without worrying about igniting inflation.
The National Chicken Council has released its projections for chicken-wing consumption on Super Bowl weekend, a staggering 1.23 billion wings. But it's the cost of the appetizer that's the real story: Wholesale chicken wings are now more expensive than they've ever been.
U.S. wholesale prices fell for the third month in a row in December, propelled by falling food and gas costs. The drop is the latest evidence inflation is tame, which means consumers have more money to spend. Low inflation also gives the Federal Reserve more freedom to keep interest rates low.
A steep drop in gasoline costs drove down a measure of U.S. wholesale prices in May by 1%, the most since July 2009. But outside the food and energy categories, prices increased moderately.
If you shop at Walmart for groceries, your food bill is about to shrink. The nation's largest retail chain is looking to provide some extra financial relief to its shoppers by offering lower prices on grocery items every day, Reuters reports.
McDonald's expects food costs to rise between 4% and 4.5% in the U.S. and Europe this year, which puts the fast food leader between a rock and a hard place: Leave prices the same, and profit margins suffer. Raise them, and cash-strapped customers may start foregoing their Big Macs.
Two years after the markets hit bottom on March 9, 2009, stock prices have rebounded significantly. But will the bull market keep rolling, or is a bear around the corner? Truth is, there's just as much uncertainty now as there was then.
Wholesale prices in December posted their biggest increase in nearly a year, lifted by more expensive energy and food costs. But most other prices were largely well behaved, suggesting inflation isn't spreading through the economy.
Led by a jump in energy, producer prices rose 0.8% in November -- a gain that suggests policymakers may be winning their battle to avoid deflation. It's the straight monthly rise. However, minus energy and food increases, inflation pretty much vanishes.
Expect your T-shirts to get a little bit thinner next year -- and maybe a little more expensive. Apparel retailers are looking high and low for ways to keep from passing on too much of their own rising costs to consumers. The trick: Doing so without hurting quality.
Producer prices rose less than expected, with much of the hike coming from energy. Excluding food and energy, PPI fell 0.6% in the month. Overall, wholesale prices are up just 1.5% in the past year -- still too close to deflation for the U.S. Federal Reserve.
Producer prices rose a higher-than-expected 0.4% in September, but the core rate rose just 0.1%, the Labor Department said. The price increases point to a low-inflation environment, easing concerns that the world%u2019s largest economy will lapse into a dangerous deflationary spiral.
The producer price index rose less than expected in July, but with the core level rising a higher-than-expected 0.3%. Low inflation -- not delfation -- is probably just what the U.S. Federal Reserve wants at this stage of the recovery.
More good news for businesses: inflation remains under control at the wholesale level, as producer prices plummeted 0.6% in February. The core rate, which excludes food and energy, rose just 0.1%.













