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*DJ US Nov Producer Prices +2.0%; Consensus +0.7%

12/19/2006
Dow Jones News Services
(Copyright © 2006 Dow Jones & Company, Inc.)



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12-19-06 0829ET

Copyright (c) 2006 Dow Jones & Company, Inc.

*DJ US Nov PPI Ex-Food & Energy +1.3%; Consensus +0.3%



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12-19-06 0829ET

Copyright (c) 2006 Dow Jones & Company, Inc.

*DJ US Nov PPI Highest Since '74; Core Highest Since '80



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12-19-06 0829ET

Copyright (c) 2006 Dow Jones & Company, Inc.

*DJ US Nov PPI Intermediate Goods +0.7%; Core -0.3%



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12-19-06 0829ET

Copyright (c) 2006 Dow Jones & Company, Inc.

*DJ US Nov PPI Crude Goods +15.7%; Core +0.5%



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12-19-06 0829ET

Copyright (c) 2006 Dow Jones & Company, Inc.

*DJ US Nov PPI Energy Prices +6.1%



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12-19-06 0829ET

Copyright (c) 2006 Dow Jones & Company, Inc.

*DJ US Nov Passenger Car Prices +2.2%



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12-19-06 0829ET

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*DJ US Oct PPI Unrevised At -1.6%



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12-19-06 0829ET

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=DJ DATA SNAP:US PPI At 32-Yr High On Gasoline, Truck Prices



By Brian Blackstone
Of DOW JONES NEWSWIRES

WASHINGTON (Dow Jones)--U.S. wholesale prices soared last month at their fastest pace in more than three decades on the back of sharply higher gasoline and light truck prices, suggesting that inflationary risks linger despite a recent soft consumer price report.

The producer price index for finished goods rose 2% in November - the highest rate since November 1974 - after decreasing 1.6% in October, the Labor Department said Tuesday.

The core PPI excluding food and energy swelled 1.3%, the highest rate since July 1980 and fully reversing October's 0.9% drop.

The numbers were well above Wall Street estimates. The median forecast of 19 economists surveyed by Dow Jones Newswires was for a 0.7% month-on-month increase in the PPI and 0.3% climb in the core rate.

In the 12 months ending in November, overall wholesale prices rose 0.9%, which though up from October remains well below annual rates seen in the spring and early summer. The core PPI was up 1.8% compared to a year ago.

The wholesale price data take some of the shine off Friday's very tame consumer price index report that showed no change in the core CPI for November. That report had fueled hopes that the Federal Reserve would have more flexibility to lower rates next year in response to any weakness in the economy.

The Fed on Dec. 12 opted to hold interest rates steady at 5.25% for a fourth-straight meeting but maintained its bias toward higher rates should inflation persist, a decision that seems supported by the PPI report.

Tuesday's report showed producer prices for energy increased 6.1% last month compared to October. Gasoline rose 17.9%, the highest monthly rate since June 2000. Gas prices had fallen sharply the previous two months. Residential natural gas increased 5.9% last month.

Food prices increased 0.1%.

Wholesale prices of passenger cars increased 2.2%, while wholesale light truck prices soared a record 13.7%. Car and light truck prices had tumbled in October due in part to new quality adjustment measures incorporated by government statisticians.

Capital equipment prices rose 1.4% last month.

Deeper in the production pipeline, price pressures remained generally elevated. Prices of raw materials, known as crude goods, rose by 15.7%, while excluding food and energy they rose 0.5%. Intermediate goods prices rose 0.7%, but were down 0.3% excluding food and energy.
 
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