Fed says price gains slightly slowing but annual inflation still high

By Ovunc Kutlu

ISTANBUL (AA) - Price increases in the US are slowing down slightly, but annual inflation still manages to remain high, according to a report by the Federal Reserve.

"Price growth continued to slow slightly in recent weeks, but year-over-year inflation remained somewhat elevated," said the Fed's Beige Book released Wednesday, which gathers information on current economic conditions from the central bank's 12 districts across the nation.

"According to our most recent surveys, growth in prices received by service providers fell by about half a percentage point to 3.8 percent. Growth in prices received by manufacturers ticked up slightly but remained moderate, overall, at a rate of 2.8 percent," it added.

The Fed said both manufacturing and non-manufacturing firms expect growth in prices to continue moderating in the next six months.

Annual consumer inflation in the US came in at 3.4% in December, up from a 3.1% gain in November, while annual producer inflation rose 1% after showing a 0.8% year-on-year gain the month before.