Summary Box: Wholesale prices rise on costlier gas

AP News
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Posted: Apr 14, 2011 3:56 PM
Summary Box: Wholesale prices rise on costlier gas

WHOLESALE PRICES RISE: More expensive gas, cars and furniture pushed wholesale prices higher last month, the government said Thursday. A separate report showed that more people applied for unemployment benefits last week, the first increase in three weeks.

THREAT TO ECONOMY: Higher gas prices leave consumers with less money to spend, which could slow the economy. That's particularly true since wages have barely increased in the past twelve months.

WAGES STAGNANT: But stagnant paychecks may have one benefit: they could limit inflation. Businesses are less likely to raise prices if they know consumers can't afford to pay the extra costs.