facebook
twitter
rss
account
search
search
 

U.S. wholesale prices rise by most in more than a year

The increase in the producer price index was the biggest since September 2012, despite very low inflation in the country.
By Ananth Baliga   |   May 14, 2014 at 11:21 AM   |   Comments

| License Photo
WASHINGTON, May 14 (UPI) -- U.S. wholesale prices rose for the second month in a row, suggesting that pricing pressures are building despite an extended period of low inflation.

The producer price index rose by a seasonally adjusted 0.6 percent for the month of April, up from 0.5 percent in March, according to the Labor Department. Economists surveyed by MarketWatch estimated a 0.2 percent increase.

Despite the low inflation, wholesale prices last month were up 2.1 percent on an annual basis. Rising prices could suggest a rebound as global growth begins to pick up. It could also ease the apprehensions the Federal Reserve had about inflation remaining below the 2 percent mark.

Whole food sales rose 2.7 percent in April, the biggest jump since February 2011, and saw a 8.4 percent surge in the cost of meat, the highest gain since 2003. The drought in the West and porcine epidemic diarrhea have been putting pressure on the prices of beef, pork and other meats.

Energy prices were up 0.1 percent and core goods prices -- which excludes food, energy and services costs -- have risen 0.3 percent in three of the last five months.

While producer prices are important and one of the three inflation gauges used by the Labor Department, the true cost of living is reflected by the consumer price index, which measures what people actually pay.

Follow @antbaliga and @UPI on Twitter.
Contact the Author
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Tesla could face sales ban in Michigan Tesla could face sales ban in Michigan
2
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
3
British Reaper UAVs join the fight against Islamic State British Reaper UAVs join the fight against Islamic State
4
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
5
Russia doesn't fear Azeri gas, scholar says Russia doesn't fear Azeri gas, scholar says
Trending News
Around the Web
x
Feedback