Economic Figures Likely to Show Rise in PPI

Inflation figures for November to be released this week will probably provide the Federal Reserve with another reason to take a wait-and-see attitude on raising interest rates any time soon, analysts said. The producer price index coming Friday, which tracks prices paid to factories, farmers and other producers, probably increased 0.2% in November after falling 0.1% a month earlier, analysts said. The core rate of the PPI, which excludes food and energy, probably rose 0.1%, analysts said. Rising productivity of U.S. workers has helped businesses contain labor costs. Revised figures set for release Tuesday are expected to show that productivity increased at a 4.8% annual rate in the third quarter, up from the Labor Department’s previous estimate of a 4.2% increase.

The U.S. economy is contending with higher oil prices. They are likely to show through in another Labor Department report Thursday. The import price index probably increased 0.6% in November, reflecting higher energy costs, after climbing 0.5% in October, analysts said. The U.S. imports more than half its oil.

In other reports this week:

* The Fed is likely to report Tuesday that consumer borrowing through credit cards, auto loans and personal loans probably increased in October at a faster pace than a month earlier. Consumer credit probably rose $6.1 billion after increasing $5.9 billion in September, analysts said.

* The Commerce Department will probably report Thursday that inventories at U.S. wholesalers increased 0.5% during October as wholesale sales increased by 0.5%.