Economy

WASHINGTON — Wholesale prices took another unexpectedly steep jump in July and shot up at the fastest year-on-year rate in 27 years, according to a government report Tuesday that is certain to fan fears about a surge in inflation. In a second report Tuesday, the Commerce Department said housing starts in July fell 11% to the lowest annual rate in more than 17 years, while building permits, an indicator of future activity, tumbled 17.7%. The Labor Department's producer price index, which measures prices at the wholesale level, climbed 1.2% after a 1.8% gain in June. And so-called core producer prices, which exclude food and energy, jumped 0.7% in July after a 0.2% June increase. Price increases are spreading outside the food and energy sectors.

The average retail price for gasoline fell to its lowest level in 14 weeks, as cheaper crude oil costs are passed on to the pump and Americans drive less, the government said Monday. The national price for regular unleaded gasoline declined 6.9 cents over the last week to $3.74 a gallon, the federal Energy Information Administration said in its weekly survey of service stations. Gasoline is the cheapest since May 12, but still 96 cents a gallon higher than a year ago.