U.S. Producer Prices Flat

Washington, Dhu-AlHijjah 13, 1437, September 15, 2016, SPA — U.S. producer prices were unchanged in August as the biggest drop in wholesale food costs in more than three years helped limit inflation, the government reported Thursday.
The Labor Department said its producer price index (PPI), which measures cost changes before they reach the consumer, was flat last month after a 0.4 percent decline in July, which was the biggest drop in 10 months.
Food prices at the wholesale level fell 1.6 percent in August, the largest drop since April 2013. Wholesale energy prices decreased 0.8 percent as gasoline prices declined 2.5 percent.
Core PPI, which excludes volatile energy and food costs, showed a modest gain of 0.1 percent. Over the past year, wholesale prices have been flat, while core wholesale prices are up 1 percent, further evidence that inflation remains tame.
A key inflation gauge favored by the Federal Reserve (Fed) has been running below the central bank’s 2 percent inflation target for more than four years.
–SPA
18:33 LOCAL TIME 15:33 GMT