Cleaning & Restoration Breaking News

Wholesale Prices Rise 0.5 Percent in November

December 10, 2004
/ Print / Reprints /
ShareMore
/ Text Size+
WASHINGTON (AP) -- Wholesale prices climbed by 0.5 percent in November -- an improvement compared with the previous month's surge, but still fresh evidence that inflation is picking up as the economy gains momentum.

The increase in the producer price index, reported by the Labor Department on Friday, came after wholesale prices shot up by 1.7 percent in October, the biggest rise in more than 14 years.

"Inflation pressures are mounting in the U.S. economy," said Sherry Cooper, chief economist at BMO Nesbitt Burns.

The reading in November on the PPI, which measures the costs of goods before they reach store shelves, showed a larger advance than the tiny 0.1 percent rise that economists were forecasting. A big jump in residential natural gas prices along with some food products, such as fish, played a big role in lifting overall wholesale prices last month.

Excluding energy and food costs, which can swing widely from month-to-month, "core" wholesale prices rose by just 0.2 percent in November, the smallest increase in four months.

The latest snapshot of inflation added to the case that Federal Reserve Chairman Alan Greenspan and his colleagues will raise short-term interest rates again next week.

Wanting to make sure inflation doesn't become a danger to the economy, the Federal Reserve has boosted short-term interest rates four times this year. Analysts expect another quarter-point rate increase when the Fed meets on Tuesday. Such a move would leave a key rate at 2.25 percent.

The economy's soft patch in the spring and early summer had helped to keep wholesale prices relatively well behaved. Now with the economy expanding solidly, inflation probably will pick up as well, economists said. A weaker U.S. dollar also can put pressure on prices of imported goods, which gives U.S. producers more room to raise prices.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

1/27/15 2:00 pm EST

Grow Your Business and Improve Operations with New Payment Technology

Attend this free webinar to learn how new developments in payment technology can help you close more jobs, increase upselling opportunities and improve operations.

Podcasts

The winter slow season is a great time to pursue commercial cleaning accounts and stay busy. John "the Hitman" Braun solicited questions from thousands of cleaners across the country regarding their questions on commercial cleaning accounts and answers them in this episode of the show.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2014 Nov/Dec

The Nov/Dec ICS features content on how to get better meter readings, a roundtable on truckmount development, neighborhood marketing and more. Also included is the annual Buyer’s Guide and Directory.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive

THE ICS STORE

FinalCover.gif
The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.pngcrc logo

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view