Wholesale Costs Up a Modest 0.2% for June

WASHINGTON — Wholesale prices rose a modest 0.2% in June, with a moderation in food price increases partially offsetting fresh gains in energy costs, the government reported today.

For the first six months of 1987, inflation at the wholesale level was running at an annual rate of 4.5%, the steepest rise for a half-year period since late 1982. For all of last year, wholesale prices fell 2.5%.

Today’s report, however, appeared to underscore contentions by analysts that inflation shows little likelihood of spiraling this year.

Indeed, subtracting the effects of volatile energy and food prices, the inflation index rose a minuscule 0.1% after falling 0.2% in May.

As for June, gasoline prices one step short of the retail level were up 3%, reversing the May decline of 1.1%. Some analysts expect those prices to continue to rise in the coming months.

Vegetables Up 17.9%

Food prices were up 0.5%, but that followed a 1.4% rise in May. While vegetable prices gained 17.9%, the cost of beef and veal rose just 1.3%. Poultry prices fell 6.2%.

Overall, the Labor Department’s producer price index for June, down from a May increase of 0.3%, was equivalent to an annual rate of inflation of 2.9%. Last month’s gain was the smallest for one month since a 0.1% jump in February.

Wholesale prices, as a rule, show more volatility from month to month than do consumer prices--which appear to be leveling off for the year at just less than 5% after gaining 1.1% in 1986.

Sharply rising oil prices, still rebounding from last year’s collapse in world petroleum prices, and a falling dollar earlier this year--which in recent months has showed some stability--had given rise to fears among economists that inflation was resurging.

But, in recent months, energy price rises have tapered off, and the dollar has appeared to stabilize on foreign exchange markets, lessening widespread fears of resurging inflation.