WASHINGTON - WHOLESALE prices took a bigger-than-expected leap in June, rising the most since November 2007, led by more-expensive energy products.

The 1.8 per cent jump in the Producer Price Index, which tracks the costs of goods before they reach store shelves, came after wholesale prices rose 0.2 per cent in May, the Labor Department reported on Tuesday. Economists expected a 0.9 per cent gain last month.

The sharp rise in wholesale prices - as well as 'core' prices that exclude food and energy - could fan investors' fears about inflation. But economists believe the increases are a temporary burst and don't signal the beginning of a dangerous bout of spiraling prices this year.

Many analysts expect the increase in energy prices will be short-lived and that the weak economy will restrain companies from ratcheting up prices they charge consumers.

Over the past 12 months, wholesale prices have actually fallen 4.6 per cent.

Stripping out volatile food and energy prices, all other prices rose a bigger-than-expected 0.5 per cent in June, the most since October. In May, the core prices dipped 0.1 per cent. Economists expect a bump-up in core prices of just 0.1 per cent last month.

For the 12 months ending in June, core prices rose 3.3 per cent. -- AP