U.S. producer prices fell in November and were muted even outside of energy, a sign of weak inflationary pressure that could point to persistent slack in the economy.
The Labor Department said on Friday its producer price index for final demand dropped 0.2 percent, a sharper fall than expected.
A plunge in gasoline prices drove the decline.
But a core measure of producer inflation, which excludes food, energy and trade services, was flat. That could be worrisome for Federal Reserve policymakers who are expected to debate next week whether to keep a pledge that borrowing costs will stay at rock bottom for a “considerable time.”
When compared to a year earlier, that core index was up just 1.5 percent, and the annual reading has been dropping a tenth of a point each month since September.
Another core reading that only strips out food and energy was also flat on the month and up 1.8 percent from November 2013.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.