US wholesale prices up 0.8 per cent in June, driven higher by sharp jump in gas prices

WASHINGTON – A big jump in gasoline prices pushed wholesale inflation up in June by the largest amount in nine months. But underlying inflation showed only a modest gain.

The Labor Department says wholesale prices rose 0.8 per cent in June compared with May when prices had risen 0.5 per cent. It was the biggest gain since a 1 per cent jump in September and was driven by a 7.2 per cent surge in gasoline prices.

Outside of the volatile energy and food sectors, core inflation was up just 0.2 per cent in June. Core prices have risen 1.7 per cent over the past 12 months. Aside from sharp swings in gas prices, inflation has increased very slowly over the past year, giving the Federal Reserve the room to keep interest rates low to boost the economy.