Wholesale Prices in U.S. Unexpectedly Fall for Fourth Month
Source: Bloomberg
by Bloomberg News
8:30 AM EDT March 13, 2015
(Bloomberg) -- Wholesale prices in the U.S. unexpectedly declined in February for a fourth consecutive month, reflecting cheaper food and a slump in profit margins among wholesalers and retailers.
The 0.5 percent decrease in the producer price index followed a 0.8 percent drop the prior month, a Labor Department report showed Friday. The median estimate in a Bloomberg survey of 73 economists called for a gain of 0.3 percent. The so-called core measure, which strips out volatile food and fuel, also decreased 0.5 percent.
Inflation in the U.S. has decelerated as a rising dollar cheapened the cost of imports and crude oil slumped. Federal Reserve policymakers are awaiting signs that inflation will move back up toward their target as they consider raising interest rates for the first time since 2006.
Inflation is very much controlled in this environment, and we have a rising dollar thats going to put downward pressure, said Robert Brusca, president of Fact & Opinion Economics in New York, whose forecast for a 0.2 percent decrease in the price index was among the closest in the Bloomberg survey. The Fed very much wants to get inflation up into its target zone so that it can be more comfortable with where policy is, but its just not happening.
Read more: http://www.bloomberg.com/news/articles/2015-03-13/wholesale-prices-in-u-s-unexpectedly-fall-for-fourth-month