U.S. producer prices were unexpectedly unchanged in November as the cost of energy products declined more than offset higher food prices, indicating that inflation at the factory gate continued to subside. The unchanged reading in the producer price index for final demand last month reported by the Labor Department's Bureau of Labor Statistics on Wednesday followed a revised 0.4% drop in October. The PPI was previously reported to have declined 0.5% in October.
Economists polled by Reuters had forecast the PPI would gain 0.1%. In the 12 months through November, the PPI rose 0.9% after advancing 1.2% in October.
Data on Tuesday showed consumer prices edged up in November amid stubbornly high rental costs. Though inflation remains above the Federal Reserve's 2% target, price increases are becoming less broad-based. U.S. central bank officials are due to conclude their two-day meeting on Wednesday.
