By Thomson Reuters – Re-Blogged From Newsmax
U.S. producer prices rose in November as gasoline prices surged and the cost of other goods increased, leading to the largest annual gain in nearly six years.
The fairly strong report from the Labor Department on Tuesday suggested a broad acceleration in wholesale price pressures, which could assuage concerns among some Federal Reserve officials over persistently low inflation.
“This demand-led price push from higher commodity prices is a classic early warning signal that consumer goods will also see increasing inflationary pressures,” said Chris Rupkey, chief economist at MUFG in New York. Continue reading