Washington- A measure of prices that producers receive for their goods and services was unchanged in August, the latest sign that inflation is in check.
Wholesale gas prices fell 1.4 percent last month and food costs dropped 0.5 percent, The Labor Department said Tuesday. Those declines offset higher prices for transportation and shipping services.
The producer price index rose just 1.8 percent last month from a year earlier. The index measures price changes before they reach the consumer.
Economics had expected that the producer price index had risen 0.1 percent in August from the previous month, according to a survey by FacSet.
“The figures provide further evidence that price pressures have eased a bit in recent months,” Paul Dales, an economist at Capital Economics, said. Excluding food, energy and retailers’ and wholesaler margins, core producer prices rose 0.2 percent and are up 1.8 percent in the past year.
Original Article By: Christopher Rugaber- The Associated Press