Inflation at the wholesale level eased slightly in April even though gasoline prices surged for a third straight month, the Associated Press reported.

Wholesale prices rose 0.7 percent last month, down slightly from a 1 percent jump in March, the U.S. Labor Department announced today. The big force driving the increase was an 8.2 percent jump in gasoline prices, which followed increases of 8.7 percent and 5.3 percent in the two previous months.

But outside of the volatile energy and food sectors, prices were unchanged last month, the second straight level reading for the closely watched core inflation index.

The Federal Reserve on Wednesday signaled that it continued to be more worried about the threat of inflation than the year-long slowdown in economic growth.

However, other economists believe the economy could be vulnerable to a possible recession, especially if troubles in the housing sector deepen and the recent spike in gasoline prices triggers a cutback in consumer spending on other items.