cloudy
Monday August 31st, 2015 4:58AM

Wholesale costs fall for 3rd month on cheap gas

By The Associated Press
WASHINGTON (AP) -- U.S. wholesale prices dropped in November for the third consecutive month, pushed down again by cheaper gasoline and lower home heating oil costs. But excluding volatile energy costs, inflation was mostly stable.

The producer price index, which measures prices before they reach the consumer, declined 0.1 percent last month, the Labor Department said Friday. This comes after similar decreases in October and September.

Overall wholesale prices have risen just 0.7 percent in the past 12 months.

Excluding energy and food prices, so-called core wholesale prices increased 0.1 percent in November and 1.3 percent over the past 12 months.

Both consumer and wholesale inflation have been running extremely low in the past year. High unemployment and weak wage increases have made it difficult for businesses to raise prices.

Mild inflation has allowed the Federal Reserve more latitude to use its policies to try and stimulate growth. And some Fed officials have raised concerns that inflation is running too low.

Energy costs have kept inflation well below the Fed's 2 percent target. In November, gas costs tumbled 0.7 percent and home heating oil prices plunged 5.7 percent. The costs for new cars also fell 0.8 percent last month.

Consumers are benefiting from cheaper prices, particularly when they fill up their cars and trucks. The average national price for a gallon of gas was just $3.25 on Friday, according to AAA's Daily Fuel Gauge Report.

The Fed has said it will keep the short-term interest rate it controls at nearly zero at least until the unemployment rate falls below 6.5 percent and as long as inflation isn't expected to rise above 2.5 percent at an annual rate in the near future. The unemployment rate fell to 7 percent in November.

Low inflation has also allowed the Fed to continuing buying bonds to try and lower long-term interest rates.

Fed officials meet on Tuesday and Wednesday to evaluate their interest rate policies.
© Copyright 2015 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 This material may not be published, broadcast, rewritten, or redistributed without permission.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 ( 1 year 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 ( 1 year 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 ( 1 year 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 ( 1 year 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 ( 1 year 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 ( 1 year 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 ( 1 year 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 ( 1 year 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 ( 1 year ago )
Local/State News
Police investigate motive of man accused of ambushing Texas officer at gas station
HOUSTON (AP) — The man charged with capital murder in the fatal shooting of a uniformed suburban Houston sheriff's deputy had a lengthy criminal record going back a decade, but never spent more than s...
7:57PM ( 9 hours ago )
Common Core test results trickle in, but goal of comparing among states goes unfulfilled
LOS ANGELES (AP) — Results for some of the states that participated in Common Core-aligned testing for the first time this spring are out, with overall scores higher than expected though still below w...
8:42AM ( 20 hours ago )
Hawaii's Big Island under tropical storm watch as Ignacio is upgraded to Category 4 hurricane
HONOLULU (AP) — The Big Island of Hawaii is bracing for high winds, heavy rain and ocean swells of up to 20 feet as strengthening Hurricane Ignacio approaches the state.Ignacio has grown to a Category...
8:20PM ( 1 day ago )
At events both somber and raucous, Gulf Coast marks 10th Katrina anniversary, looks to future
NEW ORLEANS (AP) — As the church bells rang marking the decade since Hurricane Katrina struck the Gulf Coast, the 80-year-old woman wept softly into a tissue as she leaned against her rusting Oldsmobi...
6:38PM ( 1 day ago )
US immigration patterns shift: India, China outpacing Mexico as more skilled workers arrive
DALLAS (AP) — Siddharth Jaganath wanted to return to India after earning his master's degree at Texas' Southern Methodist University. Instead, he built a new life in the U.S. over a decade, becoming a...
6:03PM ( 1 day ago )