PPI jumps, but inflation seen under control

The government says wholesale prices were pushed higher last month by gasoline and other energy costs.

The increase in the Producer Price Index of seven-tenths of one percent was the biggest jump in five months.

There is good news on inflation beneath the surface. The Labor Department says the core rate, excluding food and energy, rose just one-tenth of one percent. That suggests inflation is not rapidly spreading.

The Producer Price Index is intended to track inflation pressures before they reach the consumer.

Financial markets have been nervous lately, fearing a toxic combination of rising inflation and slowing growth. Today's news may help to calm those fears.