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Wholesale prices rise moderately in November
WASHINGTON – Wholesale prices outside the volatile food and energy categories rose modestly last month due to a large increase in the cost of new cars.
But there was little sign of inflation in the report, which showed that the weak economy is keeping prices in check.
With prices largely in check, the Federal Reserve has launched a program to purchase $600 billion in government bonds in an effort to lower longer-term interest rates. Critics have charged that effort could lead to high inflation,[link widoczny dla zalogowanych], as the central bank pumps more money into the economy.