Producer Prices Up 0.9%

Washington, DC, January 13, 2006—Producer prices rose 0.9% in December, according a Labor Department report. It was the largest gain since September.

The core PPI, which excludes food and energy cost, rose 0.1%.

Economists were expecting the December PPI to rise 0.5% and the core rate to rise 0.2%.

In November producer prices fell 0.7%, while the core PPI had risen 0.1%.

For all of 2005, the PPI rose 5.4% the largest calendar year increase since 1990.

Finished energy prices rose 3.1% in the month. Most of the upturn was caused by higher gasoline prices, which advanced 12.3% in December after falling 10.7% a month earlier.

Outside of energy, food prices were also strong, rising 0.9% after a 0.7% drop in November.

Capital equipment prices also contributed to higher prices, rising 0.1% in December.

Car prices fell 0.2% in December, while light truck prices fell 1.0%.