For the second straight month, US wholesale costs rose suggesting that demand continues to grow within the US economy lessening fears of deflation. The producer price index increased 0.4 percent, the most in five months and twice the gain in July, Labor Department figures showed today in Washington.
“We’re moving along right in the middle of the argument about prices,” Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit, said before the report. Deflation is “a scenario we’re likely to avoid. Companies are keeping a lid on prices as the economy is struggling to grow.”
Source: Bloomberg