Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Wholesale prices higher than expected

Producer Price Index rose 0.8% in January, topping forecasts for a 0.3% increase and marking the first rise in six months.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Aaron Smith, CNNMoney.com staff writer

Which government rescue program will help the most people?
  • Housing
  • Stimulus
  • Autos
  • Banks

NEW YORK (CNNMoney.com) -- The government's measurement of wholesale inflation rose more than expected in January, due largely to rising energy prices.

The Producer Price Index, which tracks the changes in selling prices for domestic producers, rose 0.8% last month, the government said Thursday. A consensus of economists surveyed by Briefing.com had forecast a 0.3% increase.

The latest figure compares with a decline of 1.9% in the prior month, which had marked the fifth straight month of declines.

The core PPI, which excludes the volatile energy and food costs, rose 0.4% in January.

The core PPI was expected to edge up 0.1% in January, according to the Briefing.com consensus, following a gain of 0.2% the prior month.

Dave Rovelli, managing director for Canaccord Adams, said the rising PPI "squashes some of the deflation worries people had."

However, he did note that the one-month increase might just be an anomaly, but that won't be known until the government releases figures for February.

"Hopefully this doesn't start a trend of it going higher and higher," said Rovelli.

Energy prices rose 3.7% in January, compared to a decline of 9.1% the prior month, the government said. As part of this, the gasoline price index jumped 15% in January, after plunging 26.2% in December.

Food prices fell in 0.4% in January, compared to a decline of 1.4% the prior month, the government said.

On Friday, the bureau will release its January figures for the Consumer Price Index, a measurement of retail inflation.

A consensus of analysts surveyed by Briefing.com expect the CPI to have edged up 0.1% in January, compared with a flat number in December. The core CPI, excluding food and energy, was expected to have risen 0.3% in January, compared with a decline of 0.7% the prior month. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Top luxury hotel suites for business travelers For many people, you can't put a price on comfort. More
Million-dollar startups: These firms scored big sales their first year Their first year in business, these companies generated $1 million in sales. More
The 10 best states for retirees It might be worth moving to a new place to find your dream retirement home. Check out these 10 states. More
Sponsors