Producer prices record biggest drop in 11 months

Washington

US producer prices unexpectedly fell in July, recording their biggest drop in nearly a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase.

Other data on Thursday showed an increase in the number of Americans filing for unemployment benefits last week. The trend in weekly jobless claims, however, remained consistent with a tightening labour market.

The Labor Department said on Thursday its producer price index for final demand slipped 0.1 per cen…