US wholesale inflation slows, but price pressures re-emerge

By PAUL WISEMAN
AP Economics Writer

WASHINGTON (AP) — Wholesale prices in the United States surged 6% in January from a year earlier, decelerating for a seventh straight month. But on a month-to-month basis, prices reaccelerated in January, indicating that inflation pressures continue to underlie the U.S. economy. The latest year-over-year wholesale inflation figure was down from 6.5% in December and from a recent peak of 11.7% in March. From December to January, though, the government’s producer price index jumped 0.7%. The producer price data measures inflation before it reaches consumers. It reflects prices charged by manufacturers, farmers and wholesalers, and it flows into an inflation gauge that the Federal Reserve closely tracks. The data can provide an early sign of how fast consumer inflation will rise.