mostlycloudy
Sunday May 29th, 2016 7:04PM

Wholesale prices dipped 0.1 percent in September

By The Associated Press
WASHINGTON (AP) -- A big decline in food costs helped hold down wholesale prices in September, contributing to a 0.1 percent decline, the first drop since April.

The slight dip followed a 0.3 percent rise in prices in August, the Labor Department said Tuesday. Wholesale food prices fell 1 percent, led by a plunge in vegetable prices.

The lower food costs helped offset a 0.5 percent rise in energy prices. That increase reflected higher prices for home heating oil, diesel fuel and natural gas. Gasoline prices, which had shot up 2.6 percent in August, dipped 0.1 percent in September.

Excluding volatile food and energy, so-called core prices rose a slight 0.1 percent in September and have risen a modest 1.2 percent over the past 12 months.

Aside from sharp swings in gas prices, consumer and wholesale inflation has barely risen in the past year. Overall wholesale prices were up just 0.3 percent for the 12 months ending in September. It was the slowest increase since the 12 months ending in October 2009, a period that included the Great Recession.

The combination of modest economic growth and high unemployment has kept wages from rising quickly. That's made it harder for retailers and other firms to raise prices. It has also allowed the Federal Reserve to continue its extraordinary stimulus measure to help boost the sluggish economy.

Energy prices did climb in late August as tensions rose over Syria. That increase accounted for two-thirds of the monthly gain in wholesale prices that month. But since then, oil and gasoline prices have fallen sharply.

For September, gasoline prices dipped slightly but other forms of energy showed gains during the month.

Among foods, vegetable prices, which had jumped in August, dropped 17.9 percent. Prices for carbonated soft drinks, beef and poultry also fell.

The Fed begins a two-day meeting Tuesday. It is expected to continue its $85 billion-a-month in bond purchases, which are intended to keep long-term interest rates low and encourage more borrowing and spending. A slowdown in hiring, along with the 16-day partial government shutdown, has made it more likely that the Fed will maintain its pace of bond buying into early 2014.

The report on wholesale prices was delayed by the shutdown. It had been scheduled to be released on Oct. 11.

The government will report Wednesday on consumer prices, a report that had originally been scheduled for release on Oct. 16. Consumer prices in August rose just 0.1 percent and in the 12 months through August consumer inflation was up 1.5 percent.
© Copyright 2016 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
S&P 500 index has its best year since 1997
The stock market closed out a record year with more all-time highs on Tuesday, giving U.S. indexes their biggest annual gains in almost two decades.
6:56PM ( 2 years ago )
Colorado readies for 'Green Wednesday' pot sales
Police were adding extra patrols around pot shops in eight Colorado towns that plan to allow recreational sales to anyone over 21 on Jan. 1.
1:52PM ( 2 years ago )
Kerry seeks framework for Mideast peace talks
A senior State Department official says Secretary of State John Kerry will try this week to get Israel and the Palestinians to agree on a framework for negotiating a final peace agreement, yet cautions against raising expectations for Kerry's latest round of shuttle diplomacy.
1:35PM ( 2 years ago )
U.S. News
Missing Ga. bank director arrested in Brunswick
A bank director accused of losing millions of investors' dollars before vanishing last year was arrested Tuesday during a traffic stop in a city in south Georgia.
7:00PM ( 2 years ago )
Amtrak to suspend some Crescent service in Jan., Feb.
Amtrak service will shut down in parts of the Southeast for several days in January and February for rail maintenance by Norfolk Southern Railway.
9:00AM ( 2 years ago )
Lung cancer scans urged for some smokers, not all
Certain current or former heavy smokers should start getting yearly scans for lung cancer to cut their risk of death from the nation's top cancer killer, government advisers said Monday - even as they stressed that the tests aren't for everyone.
7:26AM ( 2 years ago )
Business News
Sex offender held in Hall County for failing to register
A 47-year-old man was booked into the Hall County Jail Tuesday, being held without bond for allegedly failing to register as a sex offender, his second such arrest.
6:09PM ( 2 years ago )
Pharmacy robberies may involve same suspect
Oakwood Police Tuesday afternoon released details in a pharmacy robbery they're investigating, similar to one that happened in the Hall County Tuesday morning.
5:46PM ( 2 years ago )
Victim critical following apartment fire
A 41-year-old woman was in critical but stable condition Tuesday after being rescued from an apartment fire in Forsyth County late Monday afternoon.
3:16PM ( 2 years ago )
Local/State News
Alexander Rossi pulls off stunning upset in 100th Indy 500
Alexander Rossi outlasted his faster rivals _ and his fuel tank _ for a stunning victory Sunday in the 100th running of the Indianapolis 500
5:50PM ( 1 hour ago )
Braselton hospital first in state for StormReady certification
The Braselton campus of the Northeast Georgia Medical Center has been designated with the StormReady certification from the National Weather Service.
1:30PM ( 5 hours ago )
City of Oakwood prepares for widening of Old Oakwood Road
The city of Oakwood is planning to widen a portion of Old Oakwood Road to improve traffic operations along the commercial corridor.
10:30AM ( 8 hours ago )
Two injured in Saturday wreck on Queen City Parkway
Two people were taken to Northeast Georgia Medical Center Saturday afternoon following a wreck on Queen City Parkway.
10:06AM ( 8 hours ago )
New pier to be built at Sims Lake Park in Suwanee
Officials in Suwanee have given approval for a new pier to be built at Sims Lake Park.
7:00AM ( 12 hours ago )