Wednesday, April 16, 2014
YOLO COUNTY NEWS
99 CENTS

Gasoline drives up wholesale prices

WASHINGTON (AP) — U.S. wholesale prices increased in December, pushed up by rising gasoline prices and energy costs. But overall inflation remained mild.

The Labor Department said Wednesday that the producer price index, which measures costs before they reach the consumer, rose 0.4 percent last month from November. That ends three straight months of falling wholesale prices.

Gas prices increased 2.2 percent after recent declines. Home heating oil costs grew at the fastest pace in 10 months, while diesel fuel prices increased at the biggest clip in almost four years.

Excluding volatile energy and food costs, so-called core prices increased 0.3 percent in December. That was partly because of a one-time bump in tobacco costs.

Over the past 12 months, overall prices have risen a modest 1.2 percent and core prices are up just 1.4 percent. Both are well below the Federal Reserve’s 2 percent inflation target.

Businesses have struggled to raise prices because of historically high levels of unemployment and meager wage growth. Low inflation has also allowed the Fed to pursue extraordinary stimulus programs to try and boost economic growth.

In December, prices for alcohol, tobacco, pharmaceuticals and autos all rose. The 3.6 percent jump in tobacco prices caused by state and local government tax hikes.

Food costs fell 0.6 percent, led by a 13.4 percent drop in vegetables and declining prices for pork, chicken, beef and dairy products.

The increase in gasoline prices reversed two months of sharp declines. Still, prices are relatively low.

The average price of a gallon of gas was $3.31, according to AAA’s Daily Fuel Gauge Report. That’s up from $3.23 a gallon one month ago.

Falling gas prices through much of 2013 has limited inflation.

Raw material costs have also tumbled, keeping inflation in check for producers. Prices for corn, wheat, soybeans, cane sugar, coal and iron ore have each dropped over the past 12 months. Raw material costs increased in December, but the previous declines suggest that overall inflation should be tame in the months ahead.

Last month Fed officials trimmed the size of their monthly bond purchases $10 billion to $75 billion. But Fed Chairman Ben Bernanke warned that extremely low inflation was a concern. He said that the central bank could continue to pump money into the economy to stabilize inflation at target.

The bond purchases are aimed at lowering long-term interest rates to encourage more borrowing and spending.

————

By Josh Boak, AP economics writer

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Davis Enterprise does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

News

 
‘Eco-Heroes’ help get us from here to there

By Special to The Enterprise | From Page: A1, 2 Comments | Gallery

 
Alleged serial killings highlight GPS limits

By The Associated Press | From Page: A2

 
CHP seeks owner of lost cash

By Lauren Keene | From Page: A2

 
Home building up in March after frigid winter

By The Associated Press | From Page: A2

 
Davis elder-abuse case wraps up

By Lauren Keene | From Page: A2

Family fiction in miniature showcased at bookstore event

By Special to The Enterprise | From Page: A3 | Gallery

 
Local professor subdues unruly man on flight

By Adrian Glass-Moore | From Page: A3, 1 Comment

Yolo Crisis Nursery is in crisis; please help

By Special to The Enterprise | From Page: A4

 
Meditation, Buddhism classes offered

By Enterprise staff | From Page: A4

Seniors can get tips for getting around town

By Enterprise staff | From Page: A4

 
School has garden plots for rent

By Enterprise staff | From Page: A4

Sugar overload, on ‘Davisville’

By Enterprise staff | From Page: A4

 
Rotarians, students, teachers, parents collaborate on planter boxes

By Enterprise staff | From Page: A4 | Gallery

Garden doctor: Veggie gardening available year-round

By Special to The Enterprise | From Page: A5

 
Animal expert explains dogs’ thinking

By Special to The Enterprise | From Page: A5

Check out the night sky

By Enterprise staff | From Page: A5 | Gallery

 
Hop to it: Easter Bunny meets Davis history tour

By Enterprise staff | From Page: A5

 
Central Park Gardens to host Volunteer Orientation Day

By Enterprise staff | From Page: A7 | Gallery

 
.

Forum

Still supporting this guy

By Special to The Enterprise | From Page: B5

 
Tom Meyer cartoon

By Debbie Davis | From Page: A6

Urban forest under siege

By Special to The Enterprise | From Page: A6, 5 Comments

 
Drought care for our trees

By Letters to the Editor | From Page: A6, 1 Comment

.

Sports

 
UCD staff allows 19 hits in Causeway rout

By Bruce Gallaudet | From Page: B1 | Gallery

 
DHS softball struggles in nonleague outing

By Spencer Ault | From Page: B1 | Gallery

Devils open Boras Classic by splitting games

By Enterprise staff | From Page: B1 | Gallery

 
JV/frosh roundup: DHS sweeps a trio of baseball games

By Enterprise staff | From Page: B2 | Gallery

Baseball roundup: River Cats get by Grizzlies at Raley

By The Associated Press | From Page: B3

 
Giants beat L.A. in 12

By The Associated Press | From Page: B3

Sports briefs: Stanford sends Aggies home with a lacrosse loss

By Enterprise staff | From Page: B8 | Gallery

 
.

Features

 
.

Arts

Craft Center exhibit explores ‘Possibilities’

By Special to The Enterprise | From Page: A9

 
RootStock to host wine themed plein aire exhibit

By Enterprise staff | From Page: A9

The California Honeydrops to bring danceable groove to The Palms

By Enterprise staff | From Page: A9 | Gallery

 
See Flower Power exhibit at Gallery 625

By Enterprise staff | From Page: A9 | Gallery

Red Union Blue inks record deal

By Landon Christensen | From Page: A9 | Gallery

 
.

Business

.

Obituaries

.

Comics

Comics: Wednesday, April 16, 2014

By Creator | From Page: B6