Wholesale Prices Up Sharply in January

Washington, DC, Feb. 18, 2010--Wholesale prices in the U.S. rose 1.4% in January on double-digit increases in gasoline and home heating oil, the Labor Department said.

Core prices of finished goods -- which exclude food and energy goods -- rose 0.3% in January, led by higher prices for light trucks and other capital goods.

The 1.4% increase in the producer price index was higher than the 0.9% gain expected by economists. The core rate of 0.3% was also higher than the 0.1% gain expected.

The increases in the PPI and the core PPI were the largest since November, the Bureau of Labor Statistics said.

The PPI increased 0.4% in December and 1.5% in November. The core PPI was unchanged in December and rose 0.5% in November.

The producer price index is up 4.6% in the past year, the largest year-over-year gain since the financial crisis began in late 2008.

Wholesale energy prices rose 5.1% in January, despite a record 1.8% decline in residential electric power prices. Wholesale gasoline prices rose 11.5% and home heating oil prices rose 16.2%.