Wholesale inflation was up 1.8 percent last month because of the rising cost of food and gasoline.

It is the biggest monthly rise since last November and followed a 1.4 percent jump the prior month, according to the Labor Department.

Over the past 12 months, wholesale prices have risen 9.2 percent. In fact, annual inflation is now rising at its fastest pace in more than 25 years.

Wholesale energy prices climbed six percent, while the price of gasoline soared by nine percent.

The figures also show that core producer prices, which exclude food and fuel, increased by a more moderate 0.2 percent.

Rudy Narvas, senior economist at New York's 4Cast Inc, told Bloomberg that the data "should keep the Fed on its toes about inflation".

"There are inflation risks but economic growth is still fairly fragile, so the Fed will stay on hold," he predicted.

Meanwhile, the Commerce Department has said that retail sales grew by just 0.1 percent in June.

Consumers struggling with high gasoline and food costs may need to consider debt management plans in the near future.

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