U.S. Jan. core PPI rises 0.4%, biggest gain in a year

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http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFE97BF99%2DC628%2D462B%2DA5C2%2D5AE0BE412459%7D&siteid=mktw&dist=bnb

WASHINGTON (MarketWatch) - U.S. producer prices rose faster than expected in January, with price increases for cars, trucks, electricity and drugs leading the way. The producer price index increased 0.3% in January, while core prices (which exclude food and energy) rose 0.4%, the biggest gain in a year, the Labor Department said Friday. Economists were expecting 0.2% gains in both the headline PPI and in the core PPI, according to a survey conducted by MarketWatch. Energy prices were unchanged. In the January PPI, moderate price pressures were seen further back in the production pipeline. Intermediate goods prices rose 1.2%. Crude goods prices fell 0.5% in January

[hatrack]

1. Still we can be grateful that that food and energy prices didn't go up!

Only those horrid "core" items!

:eyes:

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2. We'll see what happens in next week's CPI report for January.

My guess is that both core and top-line will surprise on the upside, given what happened at the gas pump last month.

I don't think there's much doubt that the Fed will raise to at least 5% now.

[fasttense]

3. Hmm, seems that inflation is rearing its ugly head again. Pump out

those dollars Fed.