BLS BS

U.S. October Producer Prices Rise 0.7%; Core Prices Fall 0.3%
Nov. 15 (Bloomberg) -- U.S. producer prices rose last month as costs increased for natural gas and heating oil. Excluding energy and food, wholesale prices declined by the most in more than two years, reflecting cheaper cars and clothes.

Prices paid to factories, farmers and other producers rose 0.7 percent following a 1.9 percent increase that was the biggest in 15 years. Excluding energy and food, so-called prices dropped 0.3 percent after a 0.3 percent rise in September.

Companies have had limited success passing through higher costs for energy and other commodities in the last year. The decline in the core, partly a result of how the government values new model year automobiles, won't be enough to keep Federal Reserve policy makers from raising interest rates to ensure inflation doesn't accelerate, economists said.

**Keep the illusion going.......consumers tapped out will go deep for XMAS, companies NOT passing on higher costs? why arent profits falling?

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