Wholesale Inflation Rate Holds Steady

Wholesale prices were flat in July after rising earlier this year, suggesting inflation is not likely to become a problem in the near future.

The Labor Department said Friday its Producer Price Index was unchanged after a modest 0.2 percent advance in June and an actual decline of 0.1 percent in May.

The PPI, which measures cost pressures before goods reach retailers, had shot up a worrisome 0.4 percent in April and 0.5 percent in March.

But the latest PPI showed that wholesale prices remain contained.

Food costs edged up just 0.2 percent, while energy prices dropped 0.9 percent. Excluding those volatile components, the so-called core index rose a barely perceptible 0.1 percent - 0.7 percent at an annual rate so far in 1996.

In other economic news this week:

Major retailers reported sluggish July sales, which analysts attributed to consumers staying home to watch the Olympics on TV rather than going shopping.

Still, some retailers rang up stronger sales. Dayton Hudson Corp. was among those. Its Mervyn’s clothing chain exceeded expectations after a prolonged slump.