Wholesale prices rise much more than expected
WASHINGTON (AP) - The government says wholesale inflation was
soaring in March. The increase in the Producer Price Index was
nearly triple what was forecast. No surprise perhaps to consumers
was the fact that the costs of energy and food were rising rapidly.
The Labor Department reported that wholesale prices rose by 1.1
percent last month, the largest increase since last November, which
had been the biggest one-month jump in 33 years. Analysts had been
expecting a much more moderate four-tenths-percent rise in
wholesale prices for the month.
Core inflation, which excludes energy and food, was better
behaved last month, rising by just two-tenths percent.
However, over the past 12 months, wholesale prices are up nearly
7 percent and core inflation is up 2.7 percent, the biggest
year-over-year increase in nearly two years.