Inflation at wholesale level increases 1.0% in June

WASHINGTON (AP) — Inflation at the wholesale level jumped 1% in June, pushing price gains over the past 12 months up by a record 7.3%.

The Labor Department reported Wednesday that the June increase in its producer price index, which measures inflation pressures before they reach consumers, followed a gain of 0.8% in May and was the largest one-month increase since a 1.2% rise in January.

For the 12 months ending in June, wholesale prices are up 7.3%, the largest 12-month increase since the government began the current series on wholesale prices in 2010.

The news on wholesale prices followed a report Tuesday that consumer prices increased in June by 0.9% and were up 5.4% over the past 12 months, the biggest 12-month gain in 13 years.

The increase in inflation is coming at a time when the economy is rebounding from the pandemic recession and rising consumer demand is bumping up against bottlenecks and supply shortages which are pushing prices higher.

Martin Crutsinger, The Associated Press