ECONOMY

US producer prices flat in August with fod costs falling

U.S. producer prices were unchanged last month as the biggest decline in wholesale food costs in more than three years helped to keep a lid on inflation.

The Labor Department says its producer price index, which measures cost pressures before they reach the consumer, was flat in August after a 0.4 percent decline in July which was the biggest drop in 10 months. Food prices at the wholesale level fell 1.6 percent in August, the largest drop since a similar decline in April 2013.

Core inflation, which excludes the volatile energy and food categories, showed a modest gain of 0.1 percent. Over the past year, wholesale prices have been flat while core wholesale prices are up 1 percent, further evidence that inflation remains a no-show for the U.S. economy.