U.S. producer prices rise more than expectedPosted: December 15, 2009
“Prices at the wholesale level rose across-the-board in November setting off a new debate over whether the recovering economy is starting to generate inflation pressures. Higher energy costs pushed the U.S. producer price index to surge 1.8% in November, the Labor Department reported Tuesday — a rate that far exceeded analysts’ expectations.”
The core PPI was up 0.5% — also higher than expected.
Most of the increase in overall PPI was due to higher energy costs. Since energy costs have declined in the last two weeks, don’t expect to see another big jump in producer prices next month.