Wholesale inflation up less than expected in Oct

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Source: AP

WASHINGTON – Wholesale prices rose less than expected in October as the weak economy keeps inflation pressures largely in check.

Federal Reserve Chairman Ben Bernanke said Monday that inflation probably will remain "subdued for some time." That allows the central bank to keep the short-term interest rate it controls at its record low of nearly zero.

The Labor Department said Tuesday that 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, according to Thomson Reuters.

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 decline.


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