Tuesday, May 18, 2010

WASHINGTON (AP) — Prices at the wholesale level fell in April, reflecting declines in energy and food.

The Labor Department on Tuesday said wholesale prices edged down 0.1 percent last month, the second decline in the past three months. Core inflation, which excludes energy and food, rose 0.2 percent, slightly faster than expected. But over the past year, core prices are up just 1 percent.

The absence of inflation pressures means the Federal Reserve can continue to keep interest rates at record lows to bolster the economic recovery.



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