The U.S. Labor Department today reported that its producer-price index jumped by 1% in July, the biggest advance since a 1.5% increase last October.

The increase was driven by soaring gasoline costs, and rising prices for new cars.

The report on wholesale prices depicted many of the same price pressures shown in the 0.5% increase in consumer prices reported Tuesday.

However, the wholesale report also showed that the core rate of inflation, which excludes volatile energy and food costs, rose by 0.4% in July, the biggest increase since January.

Core inflation at the consumer level rose by a modest 0.1% in July.

The biggest difference in the two reports was in the measurement of new car prices. Car prices fell by 1% in the report on inflation at the consumer level while car prices were up 1.5%, the biggest increase since March 2003, in the wholesale-price report.

The PPI data showed energy prices rose 4.4% in July. Gasoline soared 10.9%.

Food prices declined by 0.3%. Prices of capital equipment rose 0.5%. Tobacco product prices were unchanged. Pharmaceutical preparations prices rose 1.3%.