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WASHINGTON, Oct 17: The latest news on the US inflation front was puzzling on Tuesday as data showed wholesale prices slid 1.3 per cent in September on plunging energy costs, but core prices rose a strong 0.6 per cent.
The Labour Department’s producer price index, a gauge of inflation at the factory gates, was a mixed bag and far astray from Wall Street analysts' predictions.
Analysts had expected on average a drop of 0.7pc in the headline PPI index and a 0.2pc rise in the core rate, which excludes volatile food and energy costs.
The report could thus revive inflation fears despite a sharp drop in the headline index, the biggest drop since April 2003.
—AFP
