U.S. producer prices soared in January - fastest pace in over 26 years

[liberal N proud]

AP:
updated 1 hour, 16 minutes ago
WASHINGTON - Battered by bad economic news, consumer confidence plunged while wholesale food, energy and medicine costs soared, pushing inflation up at the fastest pace in a quarter century.

The Labor Department said Tuesday that wholesale inflation jumped by 1 percent in January, more than double the increase that analysts had been expecting.

Meanwhile, the New York-based Conference Board reported that its confidence index fell to 75.0 in February, down from a revised January reading of 87.3. The drop was far below the 83 reading that analysts had forecast and put the index at its lowest level since February 2003, a period that reflected anxiety in the lead up to the Iraq war.

<snip>

The January inflation surge left wholesale prices rising by 7.5 percent over the past 12 months, the fastest pace in more than 26 years.

The worse-than-expected performance was certain to capture attention at the Federal Reserve, which has chosen to combat a threatened recession by aggressively cutting interest rates in the belief that weaker economic growth will keep a lid on prices.

<snip>

http://www.msnbc.msn.com/id/23349559/


Energy is the core of this!

[Gman]

1. Let's see how many more ways Bush can trash America

before he leaves office. Here's another.

[PA Democrat]

2. Why the jump in drug prices? Aren't the greedy pigs occupying the executive offices of the drug

companies making enough? Or do they feel the need to waste even more money on those putrid drug commercials polluting the airwaves?

[liberal N proud]

3. Lobbying cost more these days

Those trips to the Caribbean are more expensive than they were a few years ago.

Just a wild ass guess and rant on the drug lobby

[Winterblues]

4. They are jealous of the oil industry

Oil Industry has been experiencing Record Profits for many many years now and yet price of gas keeps on going up..:shrug: Why should the oil industry get all the loot? Medicine is a necessity so is fair game for gauging....