Biggest jump in food costs in more than 36 years

WASHINGTON (AP) — Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. Excluding those volatile categories, inflation was tame.

The Labor Department said Wednesday that the Producer Price Index rose a seasonally adjusted 1.6 percent in February — double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January’s 0.5 percent rise.

Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.

Energy prices rose 3.3 percent last month, led by a 3.7 percent increase in gasoline costs.

Separately, the Commerce Department said home construction plunged to a seasonally adjusted 479,000 homes last month, down 22.5 percent from the previous month. It was lowest level since April 2009, and the second-lowest on records dating back more than a half-century.

The building pace is far below the 1.2 million units a year that economists consider healthy.

There was little sign of inflationary pressures outside of food and energy. Core prices have increased 1.8 percent in the past 12 months.

Still consumers are paying more for the basic necessities.



Gas prices spiked in February and are even higher now. The national average price was $3.56 a gallon Tuesday, up 43 cents, or 13.7 percent, from a month earlier, according to the AAA’s Daily Fuel Gauge. Rising demand for oil in fast-growing emerging economies such as China and India has pushed up prices in recent months. Turmoil in Libya, Egypt and other Middle Eastern countries has also sent prices higher.

But economists expect the earthquake in Japan to lower oil prices for the next month or two, which should temper increases in wholesale prices in coming months. Japan is a big oil consumer, and its economy will suffer in the aftermath of the quake. But as the country begins to rebuild later this year, the cost of oil and other raw materials, such as steel and cement, could rise.

Oil prices fell sharply Tuesday as fears about Japan’s nuclear crisis intensified. Oil dropped $4.01, or 4 percent, to settle at $97.18 per barrel on the New York Mercantile Exchange.

Food costs, meanwhile, are rising. Bad weather in the past year has damaged crops in Australia, Russia, and South America. Demand for corn for ethanol use has also contributed to the increase.

Prices rose 1 percent for apparel, the most in 21 years. Costs also increased for cars, jewelry, and consumer plastics.

Read more here:   http://waronyou.com/topics/wholesale-prices-up-1-6-pct-on-steep-ris...!+Mail

Views: 37

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted blog posts
9 hours ago
Doc Vega posted a photo
10 hours ago
Sandy posted a photo
13 hours ago
tjdavis posted a video

It's Over. The Tool Bans Just Arrived!

First tool ban is here! A new law was just signed in New York that requires blueprint blocking technology on every CNC machine, laser cutter, lathe and 3D pr...
yesterday
tjdavis posted photos
yesterday
Doc Vega posted a blog post

Angry Old Man James Carville Warns of More to Come?

 A new type of signaling is brewing among the left and disenfranchised Democrats who have refused…See More
yesterday
Doc Vega posted photos
Friday
Sandy posted photos
Friday
Sandy posted videos
Friday
Doc Vega posted blog posts
Friday
Doc Vega posted photos
Thursday
tjdavis posted a video
Thursday
Doc Vega commented on Doc Vega's blog post What is Consciousness and Does it Have to be In a Certain Body?
"FREEDOMROX there are a lot of conversations going on between theologians and scientists about what…"
Thursday
Doc Vega commented on Doc Vega's blog post What is Consciousness and Does it Have to be In a Certain Body?
"cheeki kea Yes I believe that there are those who have a sympathetic awareness toward whales and…"
Thursday
tjdavis posted photos
Thursday
tjdavis favorited Doc Vega's photo
Thursday
Doc Vega posted photos
Wednesday
FREEDOMROX favorited Doc Vega's blog post What We’ve Learned from the Evils of High Density Populations
Wednesday
Doc Vega posted blog posts
Tuesday
honeygirl posted a video

Trump Surrenders! Iran Wins, and Israel Loses Everything

The United States is being driven out of the Middle East — and with it, Israel's entire security architecture. Iran didn't defeat America in a head-to-head w...
Tuesday

© 2026   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted