Wholesale prices jumped 1.7% in August from July -- their largest gain since June 2009 -- as the cost of food and energy boomed.
The seasonally adjusted increase in the producer price index was driven mostly by a 6.4% surge in energy prices, according to the Labor Department. That's the most substantial leap in three years.
Gasoline prices swelled 13.6% in August, according to the measure. Another report earlier this week found gasoline prices ticking up nationwide and remaining above $4 a gallon in California.
At least customers seem to be in their best mood in years. A study from Chapman University found consumer confidence in California at its highest level since mid-2008.