US wholesale prices up 0.3 per cent in March

WASHINGTON — U.S. wholesale prices increased 0.3 per cent in March, driven higher by the largest increase in food costs in nearly four years.

The Labor Department said Tuesday that the March gain in the producer price index, which measures inflation pressures before they reach the consumer, followed a 0.2 per cent rise in February and a 0.4 per cent jump in January.

Food prices at the wholesale level surged 2.2 per cent, the biggest increase since April 2014, with many categories showing gains. Energy costs, however, fell 2.1 per cent as gasoline prices dropped 3.7 per cent, the largest monthly decline since last May.

Over the past 12 months, wholesale prices have risen 3 per cent, the fastest annual pace since last November and another sign that inflation pressures have started to increase after years of being dormant.