Wholesale Prices Rise 0.4% on Food, Energy Costs
he producer price index, which tracks payments to factories, farmers and other producers, rose 0.4% in August on higher costs for energy and good, the Labor Department reported Friday.
The PPI, which measures inflation pressures before they reach retail store shelves, rose 0.1% in July. Excluding food and energy, the “core” index of prices rose a tame 0.1% after dropping 0.2% the month before.
Economists told Bloomberg that economic growth would need to be sustained before companies regain the ability to raise prices, economists said.
Labor said energy prices jumped 1.2% percent last month after rising 0.3% in July. Gasoline prices rose 6.3% and electricity costs increased 0.5% in August.
Food prices increased 0.7%, which reflected higher costs for beef, dairy products, fruits and vegetables, Labor noted.
Overall, prices were 3.4% percent higher in August than a year ago, compared with a 3% gain in the 12 months ended in July. Core prices are up 0.4% in the last year, up from July's 0.2% year-over-year increase.
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