Friday, August 24

Prices until July; Energy costs decline

US producer prices rose in July at the fastest pace in five months on higher costs for light trucks, drugs and cigarettes, despite falling energy prices on subdued inflationary pressures.

On Tuesday, the Labor Department said that the seasonally adjusted producer price index climbed 0.3 percent last month. By Reuters respondents analysts expected that the index to increase 0.2 percent.

By gains in consumer goods, this increase is due with light truck by 1.6 percent and pharmaceuticals to 0.9 percent.

The increase in the overall index fueled higher food costs. U.S. cultures is struck by a drought in parts of the country.

Energy prices fell however 0.4 percent last month. They were down for the fifth straight month, in a trend that inflationary pressure was for most of last year cooling has. Wholesale dropped gasoline prices by 3.1 percent in July.

While overall inflation has cooled recently, underlying inflation at higher levels took place. Some policymakers at the Fed worry that further moves, to reduce borrowing costs could higher inflation, fuel pump, said even though the Central Bank was ready to it, do more to help the economy, if necessary.

The decline which should energy prices, the economy as lower costs for fuel and other input help leave more money for other things, such as equipment or even rent prices companies.

Copyright 2011 Thomson Reuters.

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