Energy, Food Drive Up Wholesale Price Index

Surging energy costs pushed up U.S. wholesale prices at a faster-than-expected rate last month, but a closely watched gauge of core inflation eased, the Labor Department said.

The producer price index, which measures prices paid at the farm and the factory gate, rose 0.5% in June.

A steep 3.4% gain in energy prices accounted for most of the rise. But stripping out the energy increase and a 0.4% climb in food costs, the core PPI fell 0.1%.

A separate report said the country’s trade deficit widened to $50.16 billion in May, its second-highest level on record, from $48.38 billion in April.