WASHINGTON – U.S. wholesale prices rose 0.3 percent in December, led higher by the more expensive gas, food and cars.
The Labor Department says the producer price index, which measures price changes before they reach consumers rose by 1.6 percent last year. That is the biggest 12-month gain since September 2014. Nevertheless, it is historically low and represents the inflation is largely under control.
The Federal Reserve began to slowly raise interest rates as the economy heals and is keeping a close eye on inflation. With the wages start to increase faster, companies can raise prices to offset these costs. Even wholesale price increases remain below the Fed’s target of 2 percent.
December the gain was led by a great rise in wholesale gas prices, which increased 7.8 percent.