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U.S. inflation at wholesale level rises 0.9% in May
POSTED: 9:24 a.m. EDT, June 15,2007

Inflation at the wholesale level in the United States surged in May at a pace faster than expected, driven by high gasoline prices, the Labor Department reported Thursday.

The department said that wholesale prices advanced by 0.9 percent in May, above the 0.6-percent increase that analysts had predicted.

The rise in the department's Producer Price Index marked the fourth consecutive monthly increase in this gauge which measures cost pressures before they reach the consumer.

Wholesale prices had risen by 0.7 percent in April and were up by 1 percent in March and 1.3 percent in February.

The May surge in wholesale prices came as gasoline prices jumped by 10.2 percent in the month, the biggest one-month gain since November 2006.

Food prices, however, declined in May for the first time in seven months.

Excluding volatile food and energy sectors, core inflation at wholesale level increased by a moderate 0.2 percent in May, slightly better than the 0.3 percent gain expected by analysts.

From: xinhua
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