Ares
16th March 2011, 06:50 AM
Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. Excluding those volatile categories, inflation was tame.
The Labor Department says the Producer Price Index rose a seasonally adjusted 1.6 percent in February, double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January's 0.5 percent rise.
Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.
In other economic news,
U.S. businesses sold more industrial supplies, chemicals and farm products in the final three months of last year, pushing the deficit in the broadest measure of foreign trade to the lowest level in a year.
The Commerce Department says that the current account trade deficit fell 9.7 percent to $113.3 billion in the October-December period, the smallest imbalance since the end of 2009.
While the fourth quarter deficit shrank, economists are forecasting that the first quarter deficit will widen significantly, reflecting surging oil prices.
The devastating earthquake in Japan is expected to have only a modest impact on the trade deficit this year. It will likely lower imports from Japan at least temporarily while boosting U.S. exports of goods needed in the rebuilding effort.
http://www.cnbc.com/id/42106485
The Labor Department says the Producer Price Index rose a seasonally adjusted 1.6 percent in February, double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January's 0.5 percent rise.
Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.
In other economic news,
U.S. businesses sold more industrial supplies, chemicals and farm products in the final three months of last year, pushing the deficit in the broadest measure of foreign trade to the lowest level in a year.
The Commerce Department says that the current account trade deficit fell 9.7 percent to $113.3 billion in the October-December period, the smallest imbalance since the end of 2009.
While the fourth quarter deficit shrank, economists are forecasting that the first quarter deficit will widen significantly, reflecting surging oil prices.
The devastating earthquake in Japan is expected to have only a modest impact on the trade deficit this year. It will likely lower imports from Japan at least temporarily while boosting U.S. exports of goods needed in the rebuilding effort.
http://www.cnbc.com/id/42106485