Washington, DC, November 15, 2005--The producer price index in October rose 0.7% as energy prices continued to rise, according to a Labor Department report.
The core index, which eliminates volatile food and energy prices, was off 0.3%. It was the largest decline in core prices in 30 months.
Economists had forecast a flat reading in the PPI and a 0.1% gain in the core index.
The PPI is now up 5.9% in the past 12 months, down from 6.9% last month. The core PPI has risen 1.9% in the past year, down from 2.6% last month.
The PPI increased 1.9% in September, while the core PPI rose 0.3%.
Crude goods prices increased 6.7%, despite a 1.2% decline in basic industrial materials prices. The crude PPI is up 31.5% in the past year.
Auto prices fell 3%, the largest decline in four years. Much of the decline was due to the statistical imputation of quality changes, especially improved emission controls. Sticker prices also declined.
Food prices fell 0.1% as egg prices plunged 25.2%.
