News Summary: US wholesale prices jump 0.7 pct.

News Summary: More expensive gas drives US wholesale prices 0.7 pct. higher in February

Associated Press

WHOLESALE PRICES RISE: A measure of U.S. wholesale prices rose in February by the most in five months, pushed higher by more expensive gas and pharmaceuticals. The producer price index increased 0.7 percent in February from January.

TAME INFLATION: But outside energy prices, inflation was mild. Excluding the volatile food and gas categories, core prices rose 0.2 percent in February, the same as the previous month.

MORE FREEDOM FOR FED: Wholesale prices have increased just 1.7 percent in the past 12 months. Core prices have increased at the same rate. That's below the Fed's 2 percent target. Mild inflation gives the Fed more latitude to continue with its efforts to spur more growth.

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