WASHINGTON, Sept 18: US producer prices, a measure of inflation at the wholesale level, fell 1.4 per cent in August, the government said on Tuesday.
The Labour Department report showed a steeper-than-expected decline in overall prices, coming against market expectations of a 0.3 per cent fall. The main factor was falling energy costs.
But core prices, excluding volatile food and energy costs, rose 0.2 per cent, in line with forecasts.
Overall energy prices fell 6.6 per cent in August, the sharpest decline since April 2003. Gasoline prices fell 13.8 per cent and natural gas prices declined 8.5 per cent.
Food prices meanwhile dipped 0.2 per cent in August.
Overall producer prices have now risen 2.2 per cent over the past year, the same as core prices.
The report comes just hours before the Federal Reserve meets to consider interest rates. While policymakers have up to now said inflation is the biggest risk to the economy, many analysts say they expect a cut in rates with inflation easing and growth threatened by weak housing and tight credit. —AFP
