The politically sensitive deficit with China climbed to an all-time high, a development that was certain to increase pressure on the Obama administration to take a tougher line on trade issues including China's tightly controlled currency.
The Commerce Department says the deficit in August increased 8.8 percent to $46.3 billion. Exports edged up a slight 0.2 percent but this increase was swamped by a 2.1 percent jump in imports.
WHOLESALE PRICES
Meanwhile, wholesale prices rose last month due to higher costs for food and energy. But the increase isn't likely to spark fears of widespread inflation.
The Labor Department says the producer price index, which measures price changes before they reach the consumer, increased 0.4 percent in September, after an equal rise in August.
Food costs rose 1.2 percent and energy prices increased 0.5 percent. Wholesale prices have increased by 4 percent in the past year.
Excluding volatile food and energy costs, core producer prices rose only 0.1 percent in September from the previous month. That rise was driven by higher car and truck prices.
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