Loading…
Saturday, July 12, 2014
Current Weather
Loading Current Weather....
Published: Wednesday, 8/14/2013

Wholesale prices unchanged in July

Energy prices retreat following June surge

ASSOCIATED PRESS
A covered vehicle sits in part of the new paint shop at Chrysler's Sterling Heights Assembly Plant in Sterling Heights, Mich. in July. A covered vehicle sits in part of the new paint shop at Chrysler's Sterling Heights Assembly Plant in Sterling Heights, Mich. in July.
ASSOCIATED PRESS Enlarge

WASHINGTON — Falling energy prices kept a lid on U.S. wholesale inflation in July after a jump in gasoline boosted prices in June.

The Labor Department reported today that wholesale prices showed no change last month compared with June, when they rose 0.8 percent. That was the most in nine months.

Energy costs fell 0.2 percent, after June’s 2.9 percent surge. Gasoline prices dropped 0.8 percent, and natural gas costs slid 3.9 percent.

Excluding volatile food and energy costs, so-called core prices rose just 0.1 percent. Core wholesale prices are up 1.2 percent over the past 12 months, the smallest one-year increase since November, 2010.

Tame inflation has helped consumers increase spending this year despite slow income growth and higher taxes.

Aside from sharp swings in gas prices, consumer and wholesale inflation has barely increased in the past year. Overall wholesale prices rose 2.1 percent in July compared with the previous July.

For July, drug prices rose 1 percent, the largest gain since a 2.5 percent rise in January. Drug companies have been introducing price increases in January and July of each year. Food costs were flat in July as a jump in pork prices was offset by a decline in the cost of fresh vegetables.

On Thursday, the government will report on consumer prices for July, and economists estimate that overall and core prices rose just 0.2 percent.



Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.

Related stories