Producer prices climb more than forecast!
NEW YORK - December 15, 2009 - Wholesale prices in the U.S. increased more than anticipated in November, led by a jump in fuel costs and a rebound in truck prices.
The 1.8% increase in prices paid to factories, farmers and other producers was more than twice as large as anticipated and followed a 0.3% gain in October, according to Labor Department data released today in Washington. Excluding food and fuel, so-called core prices also exceeded the median estimate of economists surveyed by Bloomberg News.
Near-record excess capacity and a jobless rate that is projected to average 10% in 2010 may prevent suppliers from passing on a rebound in commodity costs even as the economy recovers. Federal Reserve policy makers meeting this week have said they expect inflation to remain subdued in coming months, allowing them to keep interest rates low.
The 1.8% increase in prices paid to factories, farmers and other producers was more than twice as large as anticipated and followed a 0.3% gain in October, according to Labor Department data released today in Washington. Excluding food and fuel, so-called core prices also exceeded the median estimate of economists surveyed by Bloomberg News.
Near-record excess capacity and a jobless rate that is projected to average 10% in 2010 may prevent suppliers from passing on a rebound in commodity costs even as the economy recovers. Federal Reserve policy makers meeting this week have said they expect inflation to remain subdued in coming months, allowing them to keep interest rates low.
