The producer price index increased in November for all finished goods and core goods excluding food and energy. Prices of core finished goods have increased between 0.5-2% annually for the past 13 months, below the 10-year average, but rising intermediate and crude goods prices suggest inflation over deflation in the coming year. Retail sales were strong in November, especially for general merchandise, sporting goods, books, music, and clothing as holiday shopping began. The Federal Reserve held interest rates near zero and will continue purchasing $600 billion in Treasury securities to balance inflation and deflation risks.