Producer Prices Jumped 1% in July; Energy and Car Costs Soar, But Economists Fail to See Signals of Broad Inflation
WASHINGTON -- Wholesale prices in July jumped by the largest amount in nine months, boosted by a surge in the cost of cars and energy.</br></br>But economists expressed little concern that the higher prices producers are paying signal broad inflation.</br></br>The producer-price index for finished goods rose 1% last month, the Labor Department said. The index was flat in June.</br></br>Much of the overall monthly increase reflected a 4.4% rise in energy prices, led by a 10.9% jump in gasoline prices and a 3.7% rise in the cost of natural gas.</br></br>The reported rise in wholesale prices contributed to a sharp oil- price drop on commodities markets yesterday, amid concerns that the two-year surge in prices could finally be cutting into demand for petroleum products like gasoline. Crude-oil futures for September delivery settled at $63.25, down $2.83, on the New York Mercantile Exchange.