Economists have mixed reactions to rise in wholesale prices
Wholesale prices jumped in June as food costs rose at the fastest pace in 20 months and gasoline prices also gained, the government said Tuesday in a report that reassured some economists but heightened inflation concerns for others.
The producer price index, which measures prices paid to farmers, factory owners and other business people before reaching consumers, rose 0.5% in June after a 0.2% gain in May and a 0.9% increase in April, the Labor Department said.
For the three months ended in June, the PPI rose at a seasonally adjusted annual rate of 6.7%, vs. 5.4% for all of 2005.
The June increase was led by the biggest gain in food costs since October 2004, as prices for fresh fruits, eggs and chicken all jumped. Gasoline prices rose 6.3% in June, and car costs rose 0.9%, the biggest increase since September.
Excluding food and energy prices, which are generally more volatile, the so-called core PPI rose 0.2% in June, an improvement from a 0.3% gain in May.
William Hummer, chief economist at Wayne Hummer Investments in Chicago, called the core number was "reassuring" and said it suggested price pressures were "contained." However, other economists noted there were sharp gains in prices at the early production stages. That suggests prices could rise in the future if those added raw-goods costs get passed along in the production process.
External Source - For the complete article click here
Source - USATODAY
Logos, product and company names mentioned are the property of their respective owners.
- Domestic Giant Southwest Sticks Nose into International Air - USATODAY
- Female Pilot Boots Passenger for Sexist Remarks - USATODAY
- An Airline Fee for Seats with Your Family? - USATODAY
- Royal Caribbean to Host a Heavy Metal Cruise - USATODAY
- Packing Lighter? Airline Bag-fee Revenue Falls - USATODAY
- CKE Restaurants Files Brief in Support of Lawsuit Fighting Inflated Credit and Debit Card Swipe Fees
- Harwood Feffer LLP Announces Investigation of Benihana, Inc.
- Dunkin' Donuts Franchisees Elect Brand Advisory Council Leaders To Collaborate With Senior Leadership
- 7-Eleven Pioneers Innovative Idea in the Fight Against Illegal Underage Sales
- Urbanspoon Unveils Its 2012 Top High-End Restaurant List
