Oct. Producer Prices Rise Modest 0.3 Pet.: October Wholesale Prices Rise Modest 0.3%
Wholesale food prices jumped sharply in October, but energy costs declined as overall wholesale prices rose a modest 0.3 percent last month, the Labor Department said yesterday.</br></br>Food prices were up 1.1 percent, the sharpest rise since April. Fresh fruit prices soared 18.5 percent and vegetable prices jumped 5.3 percent. Beef and veal prices rose 2.4 percent after falling for three consecutive months.</br></br>Economists blamed the higher food costs on the summerÛªs drought that hurt grain, fruit and vegetable crops and they warned that food prices will probably remain high through next year as a result of the drought. The decline in energy prices after three months of modest increases was due to the worldwide oil glut, economists said.</br></br>White House spokesman Larry Speakes said the modest rise in the Producer Price index showed ÛÏa significantly low rate of inflation.Û He said that ÛÏin recent weeks we have seen a remarkable string of indicators of a flourishing economy. The October producer prices showed the foundation for the recovery is strong.Û</br></br>Meanwhile, the Commerce Department said retail sales rose 1.1 percent in October to $100.18 billion, the first time sales have ex-See ECONOMY, Dll, Col. 1