US Wholesale Prices Index Rises Due To Increasing Food Prices
The US wholesale prices have been rising steadily since last month. This indicates that increasing pressures from price rise would not leave enough room for the Federal authorities to give a boost to the US economy by regulating credit.
According to the Labour Department, the index of wholesale prices, have risen by 0.2%, for the month of July. The wholesale price index is a means to measure the extent to which wholesalers and manufacturers are ready to pay for raw materials and goods.
The Central Bank proposes to keep the short term interest rates near zero till mid 2013 to boost growth.
The rise in wholesale prices in July have been attributed to a rise in cost of trucks, food and tobacco products. The pressure on wholesale prices also stems from growing production pipeline costs. The rise in wholesale price index for food has been due to higher cost of beef, veal, as well as fruits.