Wholesale Prices in U.S. Rose in February on Fuel Costs

By Ray Pinard | March 19, 2013

An interesting analysis by Bloomberg on fuel prices.

Wholesale prices in the U.S. climbed in February for a second month, reflecting a jump in energy costs that are now dissipating.

The 0.7 percent increase in the producer price index matched the median estimate in a Bloomberg survey of 72 economists and followed a 0.2 percent advance the prior month, Labor Department figures showed today in Washington. Excluding volatile food and energy, the so-called core measure rose 0.2 percent, the same as in January.

The pickup in wholesale costs is unlikely to be sustained as weak global markets in places such as Europe restrain demand for commodities. Attempts by companies such asIllinois Tool Works Inc. (ITW) to find cheaper ways to purchase raw materials also will limit pressures within the production pipeline, helping keep inflation in check as the Federal Reserve has projected.

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