Thursday, May 14, 2009
Wholesale prices have risen more than expected in April as the biggest jump in food costs in more than a year offset a second monthly decline in the price of energy products.
The Labor Department said Thursday that wholesale prices climbed 0.3% last month, a larger increase than the 0.1% that economists had expected.
Even with the larger-than-expected April gain, wholesale prices over the past 12 months have fallen by 3.7%, the biggest 12-month decline since Harry Truman was president in 1950. While falling prices can raise fears about deflation, economists believe the efforts by the Federal Reserve to combat the recession will keep that from occurring.