Inflation, Energy Costs | featured news

Producer prices rose by the most in three years in August as energy costs surged, but underlying inflation pressures remained contained, keeping the door open to a further easing of monetary policy.

Consumer prices were flat in July as energy costs retreated following a big surge in June. Over the past 12 months, prices dropped the most in nearly six decades as the recession and lower energy costs kept a lid on inflation.

The docile inflation performance reflected a second monthly drop in energy costs and a third consecutive decline in food prices.