Wholesale Prices Surge on Food, Energy Costs

Washington, DC, March 16, 2011 -- Wholesale prices rose sharply last month due to higher energy costs and the largest rise in food prices in 36 years, according to the Labor Department.

However, excluding food and energy, inflation was mild.

The government said that the Producer Price Index rose a seasonally adjusted 1.6 percent in February — double the 0.8 percent rise in the previous month.

Outside of volatile food and energy costs, the core index rose 0.2 percent, less than January's 0.5 percent rise.

Energy prices rose 3.3 percent last month, led by a 3.7 percent increase in gasoline costs.