Wholesale prices rise on gas, food and goods increases

A surge in energy costs drove wholesale prices up in September by the most in five months. The Producer Price Index, which measures price changes before they reach the consumer, rose 0.8% in September. Energy prices jumped 2.3%, the biggest increase since March. Food prices also rose sharply. Excluding food and energy costs, which tend to fluctuate sharply from month to month, the so-called core prices increased 0.2%. Higher prices for pickup trucks accounted for one-third of the increase in core prices. Wholesale prices have moderated in recent months, after rising sharply earlier this year. Fears of a possible recession in the U.S. and slower growth overseas have thus far restrained inflation. The price of commodities, such as oil and grains, generally falls when growth slows, reflecting reduced demand. It can take several months for lower prices to reach the consumer. Read more about the index report released today from The Associated Press here.