U.S. producer prices post first drop in 1-1/2 years

By Lucia MutikaniWASHINGTON (Reuters) - U.S. producer prices unexpectedly fell in August, recording their first drop in 1-1/2 years, as declines in the prices of food and a range of trade services offset an increase in the cost of energy products.

Despite the surprise weakness in producer prices reported by the Labor Department on Wednesday, overall inflation is steadily rising, driven by a tightening labor market and robust economy.The Federal Reserve is expected to raise interest rates later this month for the third time this year."Inflation.

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