Producer Prices Climb Higher Than Expected

Washington, DC, December 13, 2007 - Producer prices swelled 3.2% in November, the biggest rise in 34 years, the Labor Department said.

The Producer Price Index, excluding food and energy prices, rose an unexpectedly large 0.4%, the biggest gain since February. Core prices rose 0.1%.

The rise in prices paid at the farm and factory gate was the largest since August 1973.

A 7.2% increase in producer prices from November 2006 was the largest 12-month gain since November 1981.

Prices for all energy rose by a record 14.1%, eclipsing the previous high of 13.4% in January 1990.

Prices for crude goods rose 8.7%, the sharpest gain since February.