U.S. Inflation Gaps Up by Largest Amount in 32 Years
December 19th, 2006

Via USA Today:

Inflation at the wholesale level surged by the largest amount in more than 30 years in November, reflecting higher prices for gasoline and a host of other items.

The producer price index, which measures inflation pressures before they reach the consumer, was up 2% last month, biggest advance since a similar increase in November 1974, the Labor Department reported Tuesday.

Economists had been expecting a rebound in wholesale prices following two months of big declines. However, the 2% jump was four times bigger than the 0.5% increase they had forecast. Even excluding volatile energy and food prices, core inflation posted a 1.3% advance, biggest jump in 26 years.