A jump in energy prices pushed U.S. wholesale prices up sharply in January , according to a long-delayed report from the Labor Department issued on Thursday.
The Producer Price Index, which measures prices paid to farms, factories and refineries, climbed a steeper-than-expected 0.6 percent in January after a 0.2 percent gain in December. It was the steepest rise in wholesale prices since a 0.7 percent surge in October 2003 and handily outpaced Wall Street economists’ forecasts for a 0.4 percent pickup.
Stripping out volatile food and energy prices, wholesale prices climbed 0.3 percent in January after a 0.1 percent fall in December, again outpacing Wall Street expectations for a smaller 0.1 percent pickup in so-called “core” prices.
Imported oil prices have been on the rise for some months and it showed up strongly in the wholesale prices report. Energy prices shot up 4.7 percent in January, nearly triple the 1.6 percent December gain. It was the biggest monthly increase in energy prices since a 4.8 percent jump in March 2003.
Gasoline prices shot ahead by 14.1 percent in January after a 3.4 percent December rise while home heating oil prices surged 16.8 percent after a 6.2 percent December rise.
The January wholesale prices report has been held up for weeks because of difficulties in converting the data to a new classification system.