19 December 2006 14:42 [Source: ICIS news]
The 2% jump in producer prices - also known as wholesale prices - in November is the sharpest increase in three decades and followed declines of 1.3% in September and 1.6% in October.
The department said industrial chemicals declined 2% in November compared with October and were off 4.6% compared with producer prices for industrial chemicals in November last year.
Plastic resins and materials saw producer prices drop by 2.4% in November from October, the department said, and they were down by 5.2% compared with November 2005.
For wholesale prices in general, the department said November’s sharp 2% increase was broad-based but heavily influenced by prices for energy goods, which rose 6.1% in November after falling 5% in October.
However, even with the more volatile prices for foods and energy backed out of the index, the so-called core index of producer prices rose 1.1% in November, a marked turnaround from the nearly 1% decline in October.
In its recent monetary policy statements the Federal Reserve, the
The increase in November’s producer prices, which ultimately will be reflected in prices consumers will have to pay, raises the prospect that the Federal Reserve will increase interest rates when it holds its next rate-setting meeting on 30-31 January.
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