US inflation roars back with wholesale price jump

0 Comments | AFP, December, 2006

WASHINGTON (AFP) — US inflation made a surprise comeback in November with a surprising 2.0-percent rise in wholesale prices, the biggest monthly jump in 30 years. The Labor Department's producer price index (PPI) was far ahead of Wall Street expectations of a 0.5 percent rise and showed strong increases in a wide range of goods.

The core index, which excludes volatile food and energy prices, was up 1.3 percent -- the largest increase in more than 25 years -- against expectations of a 0.2-percent rise. The surprise jump in prices challenges expectations from economists and the Federal Reserve that inflation is under control. But some analysts said the increase may be a one-month quirk. "The November increases in producer prices should not be viewed with alarm, because of past...