AP
Prices at the wholesale level in the US plunged in February by the largest amount in seven months as a big drop in energy prices offset higher food costs.
The Labour Department said that wholesale inflation dropped 0.6 per cent in February, much larger than the 0.2 per cent decline economists had expected. Excluding food and energy, prices edged up a slight 0.1 per cent, 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.
