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Saturday 14 August 1999 00:02 BST

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STOCKS POSTED their biggest gains in nearly two months yesterday following news that inflation was not a problem in July at the producer level.

The Dow Jones industrial average ended up 184.26 points, or 1.71 per cent, at 10,973.65, which was the largest point gain since a 189.96-point surge on 16 June, when it was also lifted by tame inflation numbers. For the week, it was up 259.62 points. The technology-laden Nasdaq composite index jumped 88.32 points, or 3.46 per cent, to 2,637.81.

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