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 2013 Experience Convention & Trade Show

A look back in photos at the 2013 Experience Convention & Trade Show in Las Vegas.

THE MAGAZINE

ICS Cleaning Specialist Magazine

cover_image

2014 April

Take a look at the April 2014 issue with features on air movers, going green, carpet cleaning and new products & technologies.

Table Of Contents Subscribe

Social Media

Social media is a good way to regularly keep in touch and interact with current clients and reach potential ones. What social mediums do you use in your cleaning/restoration business?
View Results Poll Archive

THE ICS STORE

Get Paid! book cover
Get Paid! (ebook)
Over 30 authors – over 40 articles…from attorneys, contractors, consultants, instructors and others, both inside and outside the restoration industry. R & R, C & R and Cleanfax, opened their archives and gave us the best they had, other chapters were created just for the “Get Paid!” book and its readers. And every one of them has ideas for how to get paid what you are owed.

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

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

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

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.pngcrc logo