US producer prices rise a modest 0.1 percent in June

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WASHINGTON (AP) U.S. producer prices rose modestly in June, another sign that inflationary pressures remain subdued.

The Labor Department said Friday that its producer price index, which measures inflation before it reaches consumers, rose 0.1 percent last month, same as the increase in May.

Wholesale prices rose 1.7 percent from June 2018.

Toss out volatile food and energy prices and wholesale inflation rose 0.3 percent last month from May and 2.3 percent from a year earlier.

Inflation has remained tame throughout the record 10-year economic expansion, even as the unemployment rate has dropped to a very low 3.7 percent.

Federal Reserve Chairman Jerome Powell cited persistently low inflation this week as a justification for potentially lowering short-term interest rates at the Fed's next meeting late this month.