Wholesale Prices in 2007 Rise Most in 26 Years

Washington, DC, January 15, 2008--Wholesale inflation last year rose by the largest amount in 26 years, according to the Labor Department.

The Labor Department said that wholesale inflation rose 6.3 percent for 2007, mostly due to increases in energy costs ranging from gasoline to home heating oil. However, inflation fell in December by .1 percent. That was a contrast with November, when prices soared by 3.2 percent.

Also, retail sales fell by 0.4 percent in December, the worst reading in six months, the Commerce Department said.

The annual wholesale price increase was the largest since 1981.

Last year’s increase reflected energy prices that rose by 18.4 percent after declining by 2 percent the previous year.