Rising wholesale prices ring inflation alarm bells |
| CNNMoney - Mar 16, 2011 |
The cost of producing goods is rising, and consumers could soon pay the price.
The Producer Price Index rose 1.6% in February alone, the Labor Department reported Wednesday, the biggest jump in nearly two years. The rise was far worse than the 0.6% increase that economists surveyed by Briefing.com were expecting. Overall, prices rose 5.6% from a year ago.
The biggest drivers were a 3.9% jump in wholesale food prices and 3.3% rise in energy prices. But core inflation, which strips out volatile food and energy prices, was up only 1.8% compared to a year ago following a 0.2% rise in the month -- in line with forecasts.
The sharp rise in oil prices is a major concern for economists. In a recent survey by CNNMoney, economists identified the oil spike as the biggest headwind facing the nation's economic recovery.
And some fear that unlike previous scares, higher prices could hit consumers.
Read Full Article from CNNMoney
- Posted: 2011-03-16 09:26:28
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