WASHINGTON — Wholesale prices rose again in February as another hefty increase in energy costs offset falling food prices. Outside of food and energy, prices shot up at the fastest pace in 15 months.
The Labor Department reported Tuesday that wholesale prices were up 0.3 percent last month, following a 1 percent jump in January. Outside of food and energy, the rise in inflation was a troub ling 0.5 percent, the biggest increase for core inflation since a rise of 0.9 percent in November 2006.
The hefty February increase in core inflation raises concerns that relentless increases in energy costs over the past two years are beginning to spread to other areas of the economy. That could act as a constraint on the Federal Reserve, which is trying to combat a serious economic slowdown by cutting interest rates to jump-start economic growth.
The Associated Press
