Fuel prices drive up wholesale inflation

| Wednesday, April 19, 2006

Rising fuel and oil prices sent inflation at the wholesale level in March to its biggest increase in three months.

The Associated Press reported that statistics from the Department of Labor showed that wholesale prices rose by 0.5 percent in March, after a 1.4 percent drop in February.

The increase was slightly bigger than the 0.4 percent increase that had been predicted, and was driven by a 9.1 percent increase in fuel costs, according to The AP.

Meanwhile, the Producer Price Index, which measures inflation pressures before they hit the consumer level, was also up 0.5 percent, its biggest one-month increase since December.

The AP reported that, food and energy sectors aside, core inflation stayed relatively stable in March, rising just 0.1 percent.

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