US wholesale prices surge 1.2% in July

0 Comments | AFP, August, 2008

WASHINGTON (AFP) — US wholesale prices surged by a more-than-expected 1.2 percent in July as inflationary pressures continued to buffet the world's largest economy, a government survey showed Tuesday.

Most economists had only expected the Labor Department's producer price index (PPI), a key gauge of inflation at the wholesale level, to rise by 0.4 percent last month.

The core rate, which strips out volatile energy and food costs, increased by a more-than-anticipated 0.7 percent in the month to July. Economists had predicted a core rate increase of 0.2 percent.

In the year to July, headline PPI rose a heady 9.8 percent.

© 2008 AFP