Food, Energy Boost Wholesale Inflation

The government reported Wednesday that inflation at the wholesale level rose by 0.4 percent in October.

However, when volatile food and energy sectors are excluded, the core rate of inflation actually fell by 0.3 percent, the biggest decline in two years.

The government said the 0.4 percent October increase in wholesale prices followed a 0.2 percent September gain and left the PPI rising at an annual rate of 2.4 percent.

Energy prices jumped 1.9 percent in October, the biggest gain since April.

Food costs were up 0.8 percent, reflecting higher prices for beef, pork, vegetables, fruit and fish.

The increases were offset in part by a 1.6 percent drop in automobile prices.