Wholesale Prices Lower Than Expected

U.S. Producer prices for wholesale goods went down 0.7% in the month of December in a decline that was larger-than-expected.
Food and energy prices rose 0.1% while processed fuel went down 4%.
According to a Financial Times article,
"So far there has been no indication that companies have been passing rising costs onto the consumer. Margins in US companies have been high enough to absorb the extra cost.
Nevertheless, the minutes of the Federal Reserve's last meeting did point to concern over the inflationary outlook for the medium term. The Fed appears confident about the outlook for growth and employment and has been expecting price pressures to intensify."
Over 2004, the Producer Price Index has rose to 4.1%, from 4% in the previous year which marked the highest annual increase in 14 years.
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