Prices at the wholesale level plunged in February by the largest amount in seven months as a big drop in energy prices offset higher food costs. The Labor Department says wholesale inflation dropped 0.6% in February, much larger than the 0.2% decline economists had expected. Excluding food and energy, prices edged up a slight 0.1%, in line with expectations. The deep recession and weak economic rebound are keeping inflation at bay and giving the Federal Reserve leeway to maintain record-low interest rates in an effort to build momentum from stronger economic growth. While overall wholesale prices have risen 4.4% over the past 12 months, core inflation, which excludes energy and food, is up a much more subdued 1% over the past year.
U.S wholesale prices drop 0.6% ?
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