Jump in Food Costs Drives Up Price Index |

Jump in Food Costs Drives Up Price Index

Wholesale prices in the United States rose slightly in April, the government reported on Thursday, as falling oil and gasoline prices leveled off and food prices rose the most in a year.

The Labor Department reported that prices received by producers of finished goods rose 0.3 percent last month, further blunting the prospect that the economy was veering into a vicious cycle of lower prices and lower wages known as deflation.

But for some economists, the prospect of rising energy and food prices at a time of deep unemployment and shrinking wages raised concerns that strapped consumers could see their cost of living inflate even as the job market continues to get worse.

http://www.nytimes.com/2009/05/15/business/economy/15econ.html?hp=&pagewanted=print

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