US wholesale prices rise in latest sign of stubborn inflation as oil prices continue to climb

WASHINGTON (AP) — Wholesale inflation picked up last month after cooling earlier this summer as higher oil and gas prices stemming from the Iran war keep costs elevated.The Labor Department’s producer price index — which captures inflation before it reaches consumers — rose 5.4% in August from a year ago, up from 4.8% in July, the government said Thursday. Annual wholesale inflation peaked this year at 5.9% in May after the Iran conflict raised energy costs. On a monthly basis, wholesale prices increased 0.4% from July to August, after a 0.1% increase the previous month.Inflation has shown some signs of easing in recent months but is still high, frustrating consumers who are struggling with more expensive gas, groceries, clothing and other essentials.

oil prices topped $100 a barrel Thursday on renewed fighting in the Middle East, while President Donald Trump has intensified a trade war with Canada, a sign tariffs still could push up costs. Rising prices pose a political problem for the Trump administration and Republicans running in the midterm elections.In a striking acknowledgment Wednesday, Trump said that oil prices likely won’t come down until after U.S. midterm elections, but added that prices will fall immediately after Nov.

3.“Right after the election, oil prices are going to be tumbling downward,” Trump said. “I think it’s going to take a little bit longer than the midterm.”The cost for a regular gallon of gasoline has soared 44% since the U.S. and Israel attacked Iran in late February, according to data from the AAA.

Diesel, which is used in manufacturing, shipping and transportation, and can have an outsized role in producer and consumer prices, has rocketed 59% higher in that same time frame.Excluding the volatile food and energy categories, core prices rose 0.2% from July to August, the same as the previous month. Compared with a year ago, core prices rose 4.6%, up from 4.2% in July.Energy prices were a big driver of last month's increase as fighting in the Middle East flared. The wholesale price of diesel soared 24.1% just from July to August.

It has risen nearly 78% from a year earlier. Diesel fuel is used in large cargo trucks for shipping goods all over the country, and could make groceries, clothes and other items more expensive. Shipping prices rose 2.3% just last month.Other items that jumped in price include airfares, hospital car…

Food prices ticked up just 0.1% last month, a potential signal that grocery costs could cool. Electric utility prices declined, too.Thursday's figures will come under particularly close scrutiny because they could help determine whether the Federal Reserve raises its short-term interest rate at a policy meeting next week. Data from the producer price index helps calculate the Fed's preferred inflation measure, which will be released Sept.