Wholesale inflation jumps 1.2 percent

WASHINGTON, Aug. 19 (UPI) -- The Producer Price Index for finished goods in the United States gained above expectations at 1.2 percent in July, the Bureau of Labor Statistics reported.

Economists had predicted a 0.5 percent increase, Instead, it was closer to the 1.8 percent increase reported in June. In May, producer prices rose 1.4 percent.

Raw or crude material prices rose 4.2 percent in the month, following a 3.7 percent gain in June, the report said. Finished goods rose 0.7 percent and intermediate goods rose 2.7 percent.

Core inflation for producers, excluding food and energy costs, rose 0.7 percent.

Energy costs provided a large share of the increases. Energy prices for finished goods rose 3.1 percent, about half the total June increases of 6.0 percent, the report said.

Food prices also edged up, although the rate slowed from a month ago, when food prices jumped 1.5 percent.

July's index for finished consumer foods was up 0.3 percent, the report said.