Wholesale inflation jumps in January - Spokane, North Idaho News & Weather KHQ.com

Wholesale inflation jumps in January

WASHINGTON. - The government says inflation at the wholesale level soared in January. The costs of food, energy and medicine all jumped sharply.
     
The Labor Department says wholesale prices rose 1 percent last month. That was more than double what analysts had been expecting. It left prices rising at the fastest pace in more than 16 years.

The worse-than-expected performance was certain to capture attention at the Federal Reserve. Fed officials have chosen to combat a threatened recession by aggressively cutting interest rates, believing that they have room to do so because weak economic growth will keep a lid on prices.
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