Wholesale prices, along with retail sales went up in June, the Labor Department, and the Commerce Department reported on Tuesday. The sharp rise in wholesale prices - as well as “core” prices that exclude food and energy - was viewed by economists as temporary, but consumers likely will remain cautious as the unemployment rates ticks up. The 1.8 percent jump in the Producer Price Index, which tracks the costs of goods before they reach store shelves, came after wholesale prices rose 0.2 percent in May. Last month's increase was double what economists expected. “We don't expect to see these trends stick, especially with crude oil prices coming down. We don't see any inflation or deflation at this point,” said Anika Khan, economist at Wells Fargo. Many analysts expect the increase in energy prices will be short-lived and that the weak economy will restrain companies from ratcheting up prices they charge consumers. Retail sales rose 0.6 percent last month, due mainly to higher gas prices and auto sales, the Commerce Department said Tuesday. Still, the second straight increase in retail sales may be a sign that the economy is on the verge of a rebound. Americans spending more for the rest of this year should help end the longest recession since World War Two, but economists maintain that any recovery will be slow. Over the past 12 months, wholesale prices have actually fallen 4.6 percent.
