US producer prices rise 0.3 pct. on higher profit margins

WASHINGTON (AP) — U.S. producer prices rose in November for the first time in four months, driven up by higher profit margins for retailers and wholesalers and a jump in shipping costs. Despite the increase, prices have barely risen in the past year and inflation is largely tame.

The producer price index, which measures prices before they reach the consumer, increased 0.3 percent in November, the Labor Department said today. Yet in the past year, producer prices fell 1.1 percent. Excluding the volatile food and energy categories, core prices also rose 0.3 percent, and are up just 0.5 percent in the past year.

Wholesale food prices rose 0.3 percent last month, driven higher by the biggest jump in butter prices in 15 years and a nearly 12 percent increase in fresh fruit and melon costs.

Modest growth and only sluggish wage increases have kept inflation in check more than six years after the Great Recession ended. The strong dollar has also sharply lowered the cost of imports.