Oil Pushes Prices Up 1.1 Percent
Fear of war In the Persian Gulf jolted oil prices for the tliird straight] month in October, but slowing ecoJ nomic growth held wholesale price inflation for nonfood and non-energy, items to zero.</br></br>The Labor Department said yesterday that its producer price index for finished goods, one step short of retail, jumped a seasonally adjusted</br></br>That followed increases of 1.6 percent in September and 1.3 percent in August, bringing the annual inflation rate for the year so far to 7 percentÛÓthe steepest price rise since 1981.</br></br>Even though the October number was higher than expected, stock and bond markets rallied immediately after the report because prices outside the volatile food and energy sectors were unchanged.</br></br>The Dow Jones industrial average climbed 44.80 points to close at 2,488.61 yesterday. Traders took the news of a zero percent "coreÛ inflation rate as a sign that the Federal Reserve Board is likely to stimulate the economy with lower interest rates after its policy makers meet Tuesday.