Core PPI Rises An Expected 0.2%

ByJohn S. McClenahen The so-called core Producer Price Index (PPI), which strips out often volatile changes in prices for food and fuel, rose 0.2% in November, consistent with most economists' expectations. November's 0.2% increase followed three consecutive months of 0.3% increases, reveal U.S. Labor Department data released Dec. 10. The overall 0.5% increase in the November PPI for finished goods, while less than a third of October's 1.7% increase, was more than double the 0.2% rise that most economists expected. Energy prices simply didn't fall as much as anticipated, and residential natural gas prices advanced a hefty 6.2% in November following a 1% rise in October.