WASHINGTON (AP) -- Wholesale inflation posted a better-than-expected reading in June as both food and energy costs retreated. shopperþþThe Labor Department said its Producer Price Index fell by 0.2 percent last month, the first decline since a 0.6 percent dip in January. Since that time, wholesale prices had been recording big gains, reflecting the fact that gasoline surged to record levels and food costs have been rising because of heavy demand for corn to use in ethanol.þþBut in June, food prices dropped by 0.8 percent and energy prices were down 1.1 percent.þþCore inflation, which excludes volatile food and energy, rose by a higher than expected 0.3 percent in June although most of that increase reflected a jump in car prices. Without the increase in cars and light trucks, core inflation would have posted a much more moderate 0.1 percent rise.þþ
Source: NY Times
