U.S. producer prices held steady last month despite a big rise in energy costs, as food and vehicle prices plunged, according to a government report on Friday showing an unexpected absence of inflation pressure.
In its producer price report, the Labor Department said energy prices shot up 2 percent, while food prices dropped 1.1 percent. Outside of those volatile areas, “core” prices fell 0.1 percent, the first decline in four months, as the cost of cars and light trucks plummeted.
A separate report showed activity at factories in New York state picked up this month, a fresh sign of economic strength that markets saw as keeping the prospect of further Federal Reserve interest-rate hikes on the table.
