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U.S. producer prices flat in October

Staff Writer |
U.S. producer prices were unchanged in October as the price of services fell, another sign that inflationary pressure remains modest.

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The Labor Department says that its producer price index was unchanged last month after rising 0.3% in September.

Services prices fell 0.3%, pulled down by a record 5.7% drop in the price of brokerage and other financial services. The services drop was offset by a 0.4% increase in the prices of goods, including a 2.5% increase in wholesale energy prices.

Core inflation, which strips out volatile food and energy prices, fell 0.2% in October.

The producer price index measures cost pressures before they reach consumers. Inflation has stayed well below the Federal Reserve’s 2% annual target.

Low oil prices — currently well below $50 a barrel — have helped keep inflation in check.