WASHINGTON – U.s. producer prices jumped a bigger-than-expected 2 percent in November, the largest gain in more than three decades, on a spike in energy prices, a government report showed on Tuesday.
Core prices also leaped 1.3 percent, the largest increase since a matching rise in July 1980, the Labor Department said.
Analysts polled by Reuters were expecting producer prices to rise 0.5 percent and core prices - excluding volatile food and energy prices - to grow 0.2 percent.
The rise in overall producer prices was the largest since a matching 2 percent in November 1974. That gain is likely to cause anxiety inflationary pressures are not fully contained and may seep into retail prices.
Energy prices were up 6.1 percent in November, reversing two months of declines. Gasoline prices rose 17.9 percent, the biggest rise since June 2000.
Meanwhile, light truck prices rose a record 13.7 percent, while passenger car prices climbed 2.2 percent.
Excluding cars and light trucks, producer rises rose 1.4 percent, a Labor Department official said.
Over a twelve month period, core producer prices were up 1.8 percent, the biggest increase in more than a year. Overall producer prices were up 0.9 percent from November a year ago.