Whole­sale prices rise 0.6 per­cent

Costlier gas, food, chem­i­cals lead jump, but in­fla­tion pres­sures mild

Las Vegas Review-Journal - - BUSINESS - ELI SEGALL REAL ES­TATE IN­SIDER By Christo­pher Ru­gaber The As­so­ci­ated Press

WASH­ING­TON — Led by costlier gas, food and chem­i­cals, U.S. whole­sale prices surged 0.6 per­cent in Oc­to­ber, the big­gest month-to-month rise in six years. Yet ex­clud­ing items that tend to fluc­tu­ate sharply from month to month, in­fla­tion pres­sures re­main tame.

The jump in the pro­ducer price in­dex, which mea­sures prices be­fore they reach con­sumers, fol­lowed a smaller 0.2 per­cent in­crease in Septem­ber. Com­pared with 12 months ear­lier, pro­ducer prices rose a sharp 2.9 per­cent in Oc­to­ber.

But when food, en­ergy and other volatile cat­e­gories are ex­cluded, so-called core whole­sale prices rose only a mod­est 0.2 per­cent in Oc­to­ber and 2.8 per­cent from a year ear­lier.

Higher prices for ser­vices such as trans­porta­tion and ware­hous­ing drove most of Oc­to­ber’s over­all in­crease in whole­sale prices. Many truck­ing com­pa­nies have had to pay bonuses and raise pay to hire enough truck drivers, for ex­am­ple.

And the year-over-year in­crease in whole­sale prices is still lower than it was in the sum­mer, when it topped 3 per­cent. In ad­di­tion, oil prices de­clined in Oc­to­ber, which will likely lower gaso­line costs in the com­ing months.

“There is lit­tle sign that a more marked ac­cel­er­a­tion (in in­fla­tion) lies around the cor­ner,” An­drew Hunter, U.S. econ­o­mist at Cap­i­tal Eco­nom­ics, a fore­cast­ing firm, said in a re­search note.

PRICES

Ne­vada, is “100 per­cent mov­ing for­ward” and that he lined up a part­ner in Chicago.

He also said he wants to make ten­ants pay rent with a dig­i­tal cur­rency cre­ated by his com­pany Block­park and of­fer in­cen­tives for pay­ing on time.

When asked if he was wor­ried that prospec­tive ten­ants would be con­fused by this and live else­where, he said: “Not only am I not wor­ried about it … (but) I think more peo­ple are go­ing to come to the build­ing

be­cause of the pay­ment sys­tem.”

An ex­ec­u­tive with Florida East Coast Realty, which laid out plans last year for four 45-story tow­ers on Sa­hara Av­enue just east of the Strip, did not re­turn a call seek­ing com­ment.

Your guess is as good as mine whether th­ese projects will get built. If they did, they’d of­fer new op­tions for high-den­sity liv­ing in a mar­ket filled with sub­ur­ban sub­di­vi­sions.

And if they didn’t, that wouldn’t be any­thing new.

Con­tact Eli Segall at esegall@ re­viewjour­nal.com or 702-383-0342. Fol­low @eli_segall on Twit­ter.

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