The rising price of gasoline is fueling inflationary pressure.
Just a day after reporting that consumer prices are on the rise, the Labor Department says the producer price index spiked up one full percentage point in July. That reading was much hotter than expected and is the biggest advance since last October.
The report on wholesale prices shows many of the same pressures seen in the half-point increase in consumer prices for last month.
And in a sign that energy costs may be filtering down through the economy, the non-energy, non-food core rate of wholesale inflation rose by a worrisome four-tenths percent in July, the biggest increase since January.