US producer prices unchanged in August as gas costs fall

Source: AP

By CHRISTOPHER S. RUGABER

WASHINGTON (AP) — The prices charged by U.S. manufacturers, farmers and other producers were unchanged in August, the latest evidence that inflation is tame.

The Labor Department said Friday the producer price index, which measures price changes before they reach the consumer, was flat after a 0.2 percent increase in July. Excluding the volatile food and energy categories, core prices rose 0.3 percent last month.

In the past year, wholesale prices have actually fallen 0.8 percent, the seventh straight 12-month decline. Core prices have risen just 0.9 percent during that time.

With oil and gas prices falling and most other costs little changed, American consumers are enjoying mild inflation. Yet tepid price increases pose a dilemma for the Federal Reserve. It wants to see inflation closer to its 2 percent target before raising interest rates, potentially as soon as its meeting next week.

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FILE - In this July 1, 2015, file photo, Joao Rodrigues, left, removes a pair of newly-formed midsoles for the New Balance proposed 950v2 sneaker, that has passed military testing, from an IMEVA oven as Loyd Johnson looks on at the company's manufacturing facility in Boston. The Labor Department releases the Producer Price Index for August on Friday, Sept. 11, 2015. (AP Photo/Stephan Savoia, File)

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