WASHINGTON, March 17 (Xinhua) — U.S. wholesale prices declined by 0.6 percent in February, larger than the economists\’ expectation, the Labor Department reported Wednesday.
The rise in the department\’s Producer Price Index (PPI), a measure of inflation at the wholesale level, followed a 1.4 percent gain in January. Economists had forecasted a 0.2 percent drop.
Excluding the volatile food and energy sectors, core wholesale prices rose by 0.1 percent in February, matching the economists\’ expectation.
Over the past 12 months, wholesale prices are up 4.4 percent, core inflation is up a much more subdued 1 percent over the past year.
Economists believe that inflation remains not a problem at the moment and is not likely to become a threat any time soon because of all the downward pressures on wages and prices as a result of the recession.
They also believe that the subdued inflation pressure gives the Federal Reserve room to keep interest rates low to boost the recovery.
The Fed reaffirmed Tuesday to hold the federal funds rate at historic low level for \”an extended period.\”
http://www.marconimedical.com
WASHINGTON, March 17 (Xinhua) — U.S. wholesale prices declined by 0.6 percent in February, larger than the economists\’ expectation, the Labor Department reported Wednesday.
The rise in the department\’s Producer Price Index (PPI), a measure of inflation at the wholesale level, followed a 1.4 percent gain in January. Economists had forecasted a 0.2 percent drop.
Excluding the volatile food and energy sectors, core wholesale prices rose by 0.1 percent in February, matching the economists\’ expectation.
Over the past 12 months, wholesale prices are up 4.4 percent, core inflation is up a much more subdued 1 percent over the past year.
Economists believe that inflation remains not a problem at the moment and is not likely to become a threat any time soon because of all the downward pressures on wages and prices as a result of the recession.
They also believe that the subdued inflation pressure gives the Federal Reserve room to keep interest rates low to boost the recovery.
The Fed reaffirmed Tuesday to hold the federal funds rate at historic low level for \”an extended period.\”
http://www.marconimedical.com
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