Steady improvement in the economy may soon come at a price -- faster inflation.
Shoes, clothes, tires, plastics and other products all cost more at the wholesale level last month, putting pressure on businesses to pass the increases along to their customers.
The hikes also give ammunition to critics who fear that the Federal Reserve's bold steps to strengthen the economy have started to feed inflation and need to be reined in. Those critics include some Fed officials.
A widely watched measure of wholesale inflation, the core Producer Price Index, rose 0.5 percent last month, the largest monthly increase since October 2008. The entire index, which includes volatile gas and food prices, rose 0.8 percent.
http://finance.yahoo.com/news/Rising-wholesale-prices-spur-apf-2005267013.html?x=0
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