The price report showed lower inflation than expected, which could ease the concern of the Federal Reserve.

Two recent price reports appear to signal that the hated scourge of inflation may be on the rise.

The price report, reflecting what the nation's producers obtain for their goods, showed a third consecutive increase following seven months of declines.

Reaction in the markets to the price report was muted.

The price report also showed that increases for energy eased last month.

But economists also said the price report challenged any notion that inflation could move lower this year.

But later in the day, analysts concluded that the price report was generally encouraging and would not hurt the prospects for lower rates.

But others are not so sure, and said yesterday's price report from the purchasing managers sent a false signal.

The financial markets responded positively to the latest price report.

But important price reports are due out this week, which could shed more light on the direction of interest rates.