Wholesale inflation spikes higher

Labor Department says prices, up a modest 0.2% in April, raced ahead in May at fastest pace in six months.

Wholesale prices bolted ahead in May at the fastest pace in six months as energy and food costs marched higher.

The Labor Department reported Tuesday that its Producer Price Index, which measures the costs of goods before they reach store shelves, shot up 1.4% in May. That was up from a modest 0.2% rise in April and marked the biggest increase since November.

However, stripping out energy and food prices, which can swing widely from month to month, the "core" rate of inflation rose 0.2% in May, an improvement from the prior month's 0.4% increase. That suggested that other prices were fairly well behaved.

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