Wholesale prices in July rose more
sharply than expected and at a faster rate than consumer prices, {{U}}(1)
{{/U}} that businesses were still protecting consumers {{U}}(2)
{{/U}} the full brunt(冲击) of higher energy costs. The
Producer Price Index, {{U}}(3) {{/U}} measures what producers receive
for goods and services, {{U}}(4) {{/U}} 1 percent in July, the Labor
Department reported yesterday, double {{U}}(5) {{/U}} economists had
been expecting and a sharp turnaround from flat prices in June. Excluding
{{U}}(6) {{/U}} and energy, the core index of producer prices rose 0.4
percent, {{U}}(7) {{/U}} than the 0.1 percent that economists had
{{U}}(8) {{/U}} . Much of that increase was a result of an {{U}}(9)
{{/U}} increase in car and truck prices. On Tuesday, the
Labor Department said the {{U}}(10) {{/U}} that consumers paid for goods
and services in July were {{U}}(11) {{/U}} 0.5 percent over all, and up
0.1 percent, excluding food and energy. {{U}} 12 {{/U}}
the overall rise in both consumer and producer prices {{U}}(13) {{/U}}
caused by energy costs, which increased 4.4 percent in the month. (Wholesale
food prices {{U}}(14) {{/U}} 0.3 percent in July.) {{U}}(15)
{{/U}} July 2004, wholesale prices were up 4.6 percent; the core rate
{{U}}(16) {{/U}} 2.8 percent, its fastest pace since 1995.
Typically, increases in the Producer Price Index indicate similar changes
in the consumer index {{U}}(17) {{/U}} businesses recoup(补偿) higher
costs from customers. {{U}}(18) {{/U}} for much of this expansion, which
started {{U}}(19) {{/U}} the end of 2001, that has not been the
{{U}}(20) {{/U}} In fact, many businesses like automakers have been
aggressively discounting their products.