Wholesale prices rose in February at the fastest pace in 1 1/2 years, indicating a build-up in inflation pressures from rising food and energy costs, Reuters reported.
The seasonally adjusted index for prices paid to producers jumped 1.6 percent, the largest increase since June 2009. The index rose 0.8 percent in January.

In the 12 months preceding February, prices at the farm and factory gate climbed 5.6 percent, the biggest rise since March. But economists said they didn’t expect the strong producer prices to be passed on to consumers any time soon.

“Many of these things do not have much bearing on the Consumer Price Index,” said David Resler, chief economist at Nomura Securities International Inc. in New York. “But they are certainly reason for the Fed’s vigilance on commodity prices.”
The government is expected on Thursday to report limited pass-through to consumers from the increasing production costs.