Wholesale prices up 1.6 pct. on steep rise in food
WASHINGTON (AP) — Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. Excluding those volatile categories, inflation was tame.
The Labor Department said Wednesday that the Producer Price Index rose a seasonally adjusted 1.6 percent in February — double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January’s 0.5 percent rise.
Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.
Energy prices rose 3.3 percent last month, led by a 3.7 percent increase in gasoline costs.
Separately, the Commerce Department said home construction plunged to a seasonally adjusted 479,000 homes last month, down 22.5 percent from the previous month. It was lowest level since April 2009, and the second-lowest on records dating back more than a half-century.
The building pace is far below the 1.2 million units a year that economists consider healthy.
There was little sign of inflationary pressures outside of food and energy. Core prices have increased 1.8 percent in the past 12 months.
Still consumers are paying more for the basic necessities.
Gas prices spiked in February and are even higher now. The national average price was $3.56 a gallon Tuesday, up 43 cents, or 13.7 percent, from a month earlier, according to the AAA’s Daily Fuel Gauge. Rising demand for oil in fast-growing emerging economies such as China and India has pushed up prices in recent months. Turmoil in Libya, Egypt and other Middle Eastern countries has also sent prices higher.
Luke 6:25 “Woe to you who are full now, because you will be hungry. Woe to you who are laughing now, because you will mourn and weep.”
Devastation brings hunger with the collapse of the fishing industry and ruination of the shorelines, and a culmination of other things that are going to shortly take place; this is the pieces of the jigsaw puzzle that swiftly fall into place as:
Isaiah 29:8 “It will be like a hungry one who dreams he is eating, then wakes and is still hungry; and like a thirsty one who dreams he is drinking, then wakes and is still thirsty, longing for water. So will be the multitude of all the nations who go to battle against Mount Zion.”