Producer prices soar 1.4% on energy costs
By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) -- U.S. wholesale prices rose a seasonally adjusted 1.4% in January on double-digit increases in gasoline and home heating oil, the Labor Department estimated Thursday.
Core prices of finished goods -- which exclude food and energy goods -- rose 0.3% in January, led by higher prices for light trucks, airplanes and other capital goods. Drug prices jumped 1.3%.
The 1.4% increase in the producer price index was higher than the 0.9% gain expected by economists surveyed by MarketWatch. The core rate of 0.3% was also higher than the 0.1% gain expected. Read our complete economic calendar and consensus forecast.
The increases in the PPI and the core PPI were the largest since November, the Bureau of Labor Statistics said.
The PPI increased 0.4% in December and 1.5% in November. The core PPI was unchanged in December and rose 0.5% in November.
The producer price index is up 4.6% in the past year, the largest year-over-year gain since the financial crisis began in late 2008. The core PPI is up 1% in the past year. Read the full report on the BLS website.
