US Producer Prices Remain Muted as Inflation Cools and Energy Costs Drop

US producer prices remained unchanged in November, primarily due to cheaper energy goods, while underlying inflation pressures at the factory gate remained muted. The report from the Labor Department suggests that overall inflation is likely to continue subsiding, potentially allowing the Federal Reserve to cut interest rates next year. The Fed held rates steady on Wednesday and signaled that the tightening of monetary policy over the past two years is coming to an end. The producer price index for final demand in November was unchanged, following a 0.4% drop in October.