Washington, DC, Oct. 10--Wholesale prices rose last month, but at a slower pace than in August, as the ability for businesses to raise prices remains weak despite recent acceleration in the economy.
The producer-price index for finished goods rose 0.3% in September, following a 0.4% increase a month earlier, the Labor Department reported Friday. The closely watched "core" index, which excludes volatile food and energy items, was unchanged after a 0.1% gain in August.
Economists had expected a 0.1% increase in both the overall and core indexes, according to a survey by Dow Jones and CNBC.
Capital-equipment prices declined, with car costs falling 0.5%. Food prices surged 2.3%.
Meanwhile, the trade deficit narrowed to $39.21 billion in August from a revised $40.03 billion in July, according to the Commerce Department, as sales of foreign cars and parts sank to the lowest level in 19 months. That marked the fifth straight month the trade gap has tapered.
Economists had expected the gap to widen to $41.5 billion.
