Wholesale inflation jumps

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Wednesday, Aug. 17, 2005 | 9:54 a.m.

WASHINGTON -- Inflation at the wholesale level increased by the largest amount in nine months in July, reflecting the hit consumers are taking at gas pumps.

The Labor Department reported that its Producer Price Index, which measures price pressures before they reach the consumer, jumped by 1 percent in July, the biggest advance since a 1.5 percent increase last October.

The report on wholesale prices depicted many of the same price pressures shown in the 0.5 percent increase in consumer prices reported on Tuesday. However, the wholesale report showed that the core rate of inflation, excluding energy and food, rose by a worrisome 0.4 percent in July, the biggest increase since January.