WASHINGTON (AP) – U.S. wholesale prices rose at the fastest pace in five months in November, pushed higher by retailers’ profit margins and more expensive food.
The Labor Department says the producer price index, which measures price changes before they reach the consumer, rose 0.4 percent last month. The index is up 1.3 percent in the past year, the most in two years. That is still a low figure and suggests overall inflation remains tame.
Excluding volatile food and energy prices, wholesale prices rose 0.4 percent last month and 1.6 percent in the past year.
November’s jump was mostly caused by a big increase in services prices, specifically profit margins for clothing stores, gas stations, jewelry and shoe stores. Food prices increased 0.6 percent, pushed higher by more expensive fruits and melons.