Wholesale prices rise at slowest pace in 10 months

By the Associated Press | June 14, 2011 | 8:45 AM EDT

WASHINGTON (AP) — Wholesale prices rose at the slowest pace in 10 months in May as food costs fell and gas prices rose by the smallest amount in eight months. The figures suggest consumers could see some relief from rising prices soon.

The Labor Department says the Producer Price Index, which measures price changes before they reach the consumer, increased 0.2 percent in May. That's down sharply from a 0.8 percent rise in April and a 0.7 percent increase in March. In the past 12 months, the index has risen 7.3 percent, the most since September 2008.

Excluding the volatile food and energy categories, the so-called "core" index also increased 0.2 percent, driven by higher prices for plastics, clothing and new cars. The core index has risen 2.1 percent in the past year.