Wholesale inflation moderates in October with drop in energy prices

WASHINGTON -- Inflation at the wholesale level was well-behaved in October, reflecting a big drop in energy costs.

The Labor Department reported Wednesday that wholesale inflation edged up just 0.1 percent last month, far below the 1.1 percent jump in September.

The improvement reflected the fact that energy prices fell by 0.8 percent last month after having soared by 4.1 percent in September.

However, that improvement is expected to be short-lived, given that crude oil costs have soared in recent days, trading briefly above $98 per barrel last week.

Food costs were up 1 percent in October after an even bigger 1.5 percent rise in September.

Core wholesale inflation, which excludes food and energy, was well-contained last month, showing no change after a tiny 0.1 percent gain in September.

The small 0.1 percent rise in overall prices was better than the 0.3 percent gain that economists had expected.