AlQa'dah 7, 1434, Sep 13, 2013, SPA -- U.S. wholesale prices rose 0.3 percent in August, largely due to higher energy costs, but prices have risen a modest 1.4 percent over the past year, the lowest 12-month gain since April, the government reported Friday. Excluding volatile energy and food costs, wholesale prices were unchanged in August, the Labor Department said. Core prices were up 1.1 percent over the past 12 months, the smallest gain since mid-2010 and another sign that inflation remains tame. Energy prices climbed in late August as tensions rose over Syria, accounting for two-thirds of the monthly increase in wholesale prices. Food prices rose 0.6 percent last month. The Federal Reserve (Fed), which meets next week, closely monitors wholesale and consumer prices, with the aim of keeping inflation at around 2 percent. Consumer prices were up 2 percent over the previous year. Core consumer prices-which exclude energy and food costs-have increased 1.7 percent over the past 12 months. A weak economy has contained inflation. Companies cannot increase prices because demand for their products is not strong enough.
