Wholesale prices jump in October
WASHINGTON >> Led by costlier gas, food and chemicals, U.S. wholesale prices surged 0.6 percent in October, the biggest month-tomonth 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
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Tomatoes go through a washing process at the Los Gatos Tomato Products plant in Huron, California.