Annual PPI: Wholesale prices rose in September
Annual PPI – a gauge of wholesale prices – rises to 6.9 percent. But without energy and food, core annual PPI up only 2.5 percent.
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Pressure on the Fed for further monetary stimulus has lessened in recent weeks as data on retail sales and trade suggested economic growth accelerated in the third quarter.Skip to next paragraph
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Economists estimate gross domestic product grew at an annual pace of anywhere between 2.3 percent and 2.7 percent, a sharp step up from the second quarter's tepid 1.3 percent rate.
HOUSING SENTIMENT ROSIER
The economy's improving tone is starting to filter through to the ailing housing market.
Home-builder sentiment rose this month to its highest level in nearly 1-1/2 years, although it remained well below levels consistent with improving market conditions, the National Association of Home Builders said in a separate report.
On the wholesale price front, gasoline was not the only culprit behind the sharp rise. Food prices rose a relatively steep 0.6 percent last month, although that was a slower pace than in August.
Prices for light motor trucks also increased 0.6 percent -- accounting for a third of the rise in core prices.
Car prices, however, fell 0.5 percent after slipping 0.4 percent in August. They spiked earlier this year because of supply shortages related to Japan's earthquake.
In the 12 months to September, producer prices increased 6.9 percent, accelerating from August's 6.5 percent advance. Core prices were up 2.5 percent over that period, the same as in the year through August.