Wholesale inflation up less than expected

November 17, 2009 7:58:37 AM PST
Wholesale prices rose less than expected in October as a weak economy keeps inflation pressures largely in check.

The Labor Department says its Producer Price Index rose 0.3 percent last month, after falling 0.6 percent in September. Analysts had expected a 0.5 percent gain last month.

The index tracks the prices of goods before they reach store shelves and is considered an early read of price trends.

In the 12 months ending in October, producer prices fell 1.9 percent, the 11th straight month of declines.

Excluding volatile food and energy costs, the core index dropped 0.6 percent in October.

In the past year, the core index rose 0.7 percent, the smallest increase in more than five years.

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