Wholesale prices rose at the slowest pace in 10 months in May, as food costs fell and gas prices rose by the smallest amount in eight months. The figures suggest consumers could see some relief from rising prices soon, The Associated Press reports.
The Producer Price Index, which measures price changes before they reach the consumer, increased 0.2 percent in May, the Labor Department said Tuesday. That’s down sharply from a 0.8 percent rise in April and a 0.7 percent increase in March.
In the past 12 months, the index has risen 7.3 percent, the most since September 2008.
Excluding volatile food and energy, the so-called “core” index also increased 0.2 percent. The gain was driven by higher prices for plastics, clothing and new cars. The core index has risen 2.1 percent in the past year.
Rapid increases in food and energy prices have driven up inflation since last fall. That has slowed the economy as consumers have had to spend more on those items and less on other goods.
Retail sales fell for the first time in nearly a year last month as consumers bought fewer cars, according to a separate report Tuesday from the Commerce Department. Auto sales dropped 2.9 percent last month, pulling down overall retail sales 0.2 percent. That was the first drop after 10 straight increases.
