Wholesale prices rise in September on sharp increases in gas, food
Prices are going up at the wholesale level. Will they go up at the checkout counter too?
Rising gas prices drove up wholesale prices in September by the most in five months, the Labor Department reported Tuesday. The increase was more than economists expected.
The good news is the increase was mainly due to seasonal factors. Overall, inflation remains in check. Wholesale prices rose 0.8% last month, while energy prices climbed 2.3%. That figure includes gas prices, which rose the most since March.
Food prices also rose sharply. Prices for beef, veal and produce all increased.
But economists were pleased to see that core prices, which exclude food and energy costs, rose only 0.2%.
The Producer Price Index measures price changes before they reach the consumer. On Wednesday, the Labor Department releases the Consumer Price Index, which reports how much prices went up for consumers.
— Pat Benson
Photo: A gas pump in Brea. Credit: Alex Gallardo / Los Angeles Times