Wholesale prices rise in August

WASHINGTON - Wholesale prices rose last month, but outside of volatile food and energy costs inflation remained tame.

The Producer Price Index rose 0.4 percent in August after increasing 0.2 percent in July, the Labor Department said yesterday.

The index measures price changes on products before they reach the consumer.

But excluding food and energy costs, so-called "core" producer prices were relatively flat. They rose just 0.1 percent and are up 1.3 percent in the past year.

There has been little threat of inflation in recent quarters.

The weak economy has stifled demand at every stage of the production chain. That makes it tough for producers to raise the prices they charge to retailers.

Energy costs increased by the most since January. Gasoline costs rose 7.5 percent. Home heating oil costs increased 7 percent.

Those increases followed four straight monthly declines in energy prices, during which prices fell a combined 13.5 percent.

The August results are a partial rebound from that decline.

Food prices fell 0.3 percent, mostly because of a decline in the cost of vegetables.

- AP