Business briefs

WASHINGTON. US inflation at the wholesale level shot up at double the expected rate in August as gasoline prices soared by the largest amount in a decade. The increase wasn't seen as a signal that inflation was in danger of becoming a problem, however, given the economy's continued weakness. The Labor Department said Tuesday that wholesale prices rose by 1.7 percent in August, sharply higher than the 0.8 percent rise economists had forecast.

TOKYO.Struggling Japan Airlines Corp. said Tuesday it aims to conclude tie-up talks with foreign carriers by mid-October and announced plans to slash 14 percent of its workers under a major restructuring plan. Delta Air Lines Inc., the world's biggest airline operator, and its rival American Airlines are vying to buy a stake in JAL, which incurred its biggest-ever quarterly net loss of $1 billion in the three months to June.

NEW YORK. US telecoms equipment supplier Avaya has emerged as the successful bidder for bankrupt Canadian telecoms equipment supplier Nortel's Enterprise Solutions business, agreeing to pay $900 million, the companies said in separate statements. Avaya will also provide $15 million for an employee retention program.

GEORGETOWN. The Cayman Islands government will present a revenue plan to Britain this week to seek approval for the British overseas territory to borrow $372 million to help plug a widening government operating deficit. The Cayman Islands, a beach-lined Caribbean territory that is domicile to most of the world's hedge funds, faces ballooning debt caused by overspending on public infrastructure projects, and the global financial crisis that has sapped revenues.

VIENNA.Oil prices hovered near $69 a barrel Tuesday as investors weighed concerns about weak crude demand against optimism of a global economic recovery. By midday in Europe, benchmark crude for October delivery was up 16 cents at $69.02 a barrel on the NY Mercantile Exchange.