Wholesale prices rise 0.6 percent
Costlier gas, food, chemicals lead jump, but inflation pressures mild
WASHINGTON — Led by costlier gas, food and chemicals, U.S. wholesale prices surged 0.6 percent in October, the biggest month-to-month rise in six years. Yet excluding items that tend to fluctuate sharply from month to month, inflation pressures remain tame.
The jump in the producer price index, which measures prices before they reach consumers, followed a smaller 0.2 percent increase in September. Compared with 12 months earlier, producer prices rose a sharp 2.9 percent in October.
But when food, energy and other volatile categories are excluded, so-called core wholesale prices rose only a modest 0.2 percent in October and 2.8 percent from a year earlier.
Higher prices for services such as transportation and warehousing drove most of October’s overall increase in wholesale prices. Many trucking companies have had to pay bonuses and raise pay to hire enough truck drivers, for example.
And the year-over-year increase in wholesale prices is still lower than it was in the summer, when it topped 3 percent. In addition, oil prices declined in October, which will likely lower gasoline costs in the coming months.
“There is little sign that a more marked acceleration (in inflation) lies around the corner,” Andrew Hunter, U.S. economist at Capital Economics, a forecasting firm, said in a research note.
Nevada, is “100 percent moving forward” and that he lined up a partner in Chicago.
He also said he wants to make tenants pay rent with a digital currency created by his company Blockpark and offer incentives for paying on time.
When asked if he was worried that prospective tenants would be confused by this and live elsewhere, he said: “Not only am I not worried about it … (but) I think more people are going to come to the building
because of the payment system.”
An executive with Florida East Coast Realty, which laid out plans last year for four 45-story towers on Sahara Avenue just east of the Strip, did not return a call seeking comment.
Your guess is as good as mine whether these projects will get built. If they did, they’d offer new options for high-density living in a market filled with suburban subdivisions.
And if they didn’t, that wouldn’t be anything new.
Contact Eli Segall at esegall@ reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.