Wholesale prices dip, new home construction rises [View All]

Source: Associated Press,

WASHINGTON – Wholesale prices fell in April, reflecting declines in energy and food, while construction of new homes rose more than expected.
But a drop in building permits, a gauge of future activity, along with the expiration of a government tax credit for home purchases suggest the construction gains could fade soon.
Wholesale prices edged down 0.1 percent last month, the second decline in the past three months, the Labor Department said Tuesday. 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.

Read more: http://news.yahoo.com/s/ap/20100518/ap_on_bi_go_ec_fi/us_economy;_ylt=Am5aIbuB6zP7LKGXi8woQeSs0NUE;_ylu=X3oDMTFmajdpZWFrBHBvcwMxMDIEc2VjA2FjY29yZGlvbl9idXNpbmVzcwRzbGsDd2hvbGVzYWxlcHJp

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