Producer Prices Rise in July

Washington, DC, Aug. 17, 2011 -- The core Producer Price Index rose 0.4% in July, the biggest increase since January, according to the Labor Department.

The overall PPI, which measures price changes in goods before they reach the consumer, rose 0.2% last month, the government said Wednesday.

That follows a 0.4% drop in June, the first decline in 17 months.

Gas prices fell for the second straight month. Food costs rose 0.6%, the biggest rise since February.

The jump in the core index is unlikely to continue, economists said, partly because raw material prices are increasing at a slower rate than finished goods.