Wholesale Inflation Increases 1.1 percent.

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Wholesale inflation shot up by a surprising 1.1 percent in January, the biggest jump in a decade, reflecting a record rise in natural gas prices and higher costs for foods, cars and cigarettes, the Labor Department reported today. The Producer Price Index, which measures inflation pressures before they reach store shelves, followed a mild 0.2 percent increase in December. One of the reasons the Federal Reserve cited for being able to act so aggressively in slashing interest rates by a full percentage point last month was that inflation had remained in check.