clear
Saturday September 5th, 2015 3:47AM

More expensive gas pushes up wholesale prices

By The Associated Press
WASHINGTON - A sharp rise in gasoline costs drove up wholesale prices last month by the most in more than three years. But outside energy and food, price gains were mild.

The producer price index, which measures price changes before they reach the consumer, jumped 1.7 percent in August, the Labor Department said Thursday. The increase was mostly because gas prices soared 13.6 percent, the biggest gain in three years.

Food prices rose 0.9 percent, driven up by steep increases in the cost of eggs and dairy products.

Excluding the volatile food and gas categories, core wholesale prices rose only 0.2 percent, below July's increase.

In the past 12 months, wholesale prices have increased 2 percent, a mild gain and far below the recent peak of 7.1 percent in July 2011.

Low inflation means consumers have more money to spend, which helps the economy. It also gives the Federal Reserve more leeway to keep interest rates low in an effort to spur economic growth. If prices were to begin rising rapidly, the Fed might be forced to raise rates in response.

The severe drought in the Midwest may have begun to impact wholesale food prices in August. The dry weather has harmed a range of crops, including corn and soybeans.

Higher corn prices raise costs for many different foods on grocery store shelves. Corn is used to make everything from cosmetics to cereal, soda, cake mixes and candy bars. It is also used as a feed for cattle and hogs. That means more expensive corn can also push up beef and pork prices
© Copyright 2015 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Doctors: Blood clot located in Clinton's head
Secretary of State Hillary Rodham Clinton developed a blood clot in her head but did not suffer a stroke or neurological damage, her doctors said Monday. They say they are confident that she will make a full recovery.
3:55PM ( 2 years ago )
Illinois Sen. Kirk to return a year after stroke
Nearly a year after a stroke left him barely able to move the left side of his body, U.S. Sen. Mark Kirk is expected to climb the 45 steps to the Senate's front door this week - a walk that's significant not just for Illinois' junior senator, but also for medical researchers and hundreds of thousands of stroke patients.
3:54PM ( 2 years ago )
U.S. News
Ga. ethics legislation could end free tickets
General Assembly approval next year of a proposed ethics reform measure could endanger an important fall tradition for Georgia lawmakers - free football tickets.
6:26PM ( 2 years ago )
Abortion restrictions, tax changes loom in Ga.
Tax breaks for manufacturers and higher unemployment taxes for employers take effect with the new year in Georgia, but it remains to be seen whether the state's newest abortion restrictions will be enforced.
6:23PM ( 2 years ago )
Business News
Couch names administrative team
Ahead of his scheduled swearing in Friday, Hall County Sheriff-elect Gerald Couch named his top administrative team Monday.
6:28PM ( 2 years ago )
Tech beats Southern California in Sun Bowl
Tevin Washington threw a touchdown pass and ran for another score to help Georgia Tech beat Southern California 21-7 on Monday in the Sun Bowl.
5:54PM ( 2 years ago )
Hall Co. officials launch health-based initiative for employees
Hall County officials believe healthy county employees will be of greater service to the county. With that in mind, they have created a health-based fitness initiative to provide free fitness training for county workers.
5:46PM ( 2 years ago )
Local/State News
US stocks sink as mixed jobs report keeps investors guessing about the rate outlook
NEW YORK (AP) — It's an adage that investors hate uncertainty. Unfortunately for them, they got more of it on Friday.The stock market has been volatile for weeks on concern that China's economy is slo...
5:43PM ( 10 hours ago )
Attorney for jailed clerk: Marriage licenses given to gay couples void, will appeal contempt
MOREHEAD, Ky. (AP) — A jailed Kentucky clerk asserted that marriage licenses issued without her authority Friday to gay couples in Rowan County are void and "not worth the paper they are written on" b...
5:10PM ( 10 hours ago )
NC ag officials talking about avian flu with flock owners
Agriculture department officials in North Carolina are holding a series of meeting with backyard poultry owners to talk about the dangers of avian flu.
By The Associated Press
12:59PM ( 14 hours ago )
US employers added 173,000 jobs in August; unemployment rate falls to 7-year low of 5.1 pct.
WASHINGTON (AP) — The U.S. unemployment rate fell to a seven-year low in August as employers added a modest 173,000 jobs, a key piece of evidence for the Federal Reserve in deciding whether to raise i...
9:35AM ( 18 hours ago )
Judge nixes 4-game 'Deflategate' suspension for Tom Brady; NFL quickly appeals to 2nd Circuit
NEW YORK (AP) — Tom Brady learned Thursday he will start the season on the field after a judge lifted the league's four-game suspension of the star quarterback for a scandal over deflated footballs, s...
9:19PM ( 1 day ago )