Reply #22: PPI surges 1.9%, most since 1974 [View All]

[UpInArms]

http://www.marketwatch.com/news/story.asp?guid=%7B3FD81095%2D93C4%2D40EE%2D9A20%2DA41888A0E4F8%7D&siteid=mktw

WASHINGTON (MarketWatch) - U.S. wholesale prices rose 1.9% in September, the biggest jump in 31 years, the Labor Department said Tuesday.

Price increases were led by a 7.1% rise in wholesale energy prices, the biggest jump in 15 years. Food prices also soared, rising 1.4% on a record 49% increase in egg prices.

The producer price index for finished goods has increased 6.9% in the past 12 months, the fastest rise in prices in 15 years and nearly double the rate seen in June.

Core prices, which exclude food and energy, increased 0.3% as prices for capital goods increased 0.3%. Car prices increased 0.9% and truck prices climbed 1%.

The core rate is up 2.6% in the past year, down from 2.8% in August.

The PPI data come days after the Labor Department said consumer prices increased 1.2% in September on higher energy prices, which peaked in September after two devastating hurricanes disrupted much of the oil and gas production and distribution in the Gulf Coast region.

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Core intermediate goods prices increased 1.2% as building materials, chemicals and metals jumped in price. It's the largest gain the core intermediate PPI in 25 years. The year-over-year increase in the core intermediate rose to 3.5% in September from 3.2% in August.

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