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Services boost U.S. producer prices; underlying inflation firming

Posted on 14. Nov, 2017 by in U.S. National

Services boost U.S. producer prices; underlying inflation firming

U.S. producer prices rose more than expected in October, driven by a surge in the cost of services, leading to the biggest annual increase in wholesale inflation in more than 5-1/2 years. Tuesday's report from the Labor Department also showed steady gains in underlying producer prices, which supported expectations of a gradual increase in inflation and keep the Federal Reserve on track to raise interest rates in December. The producer price index for final demand increased 0.4 percent last month after a similar gain in September.


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