U.S. producer prices in January rose for the first time since July, the Labor Department reported Thursday, as energy prices staged a comeback and propelled the overall producer price index higher.
Producer prices for finished goods climbed by 0.8% in the month, twice the number expected by Wall Street economists. The core PPI, which strips out food and energy prices, rose by 0.4%.
Energy prices staged a huge turnaround in January, rising by 3.7% after falling 9.1% in December and 12.4% in November.
Economists surveyed by MarketWatch were expecting producer prices to climb by 0.4% in January. They predicted the core PPI would rise by 0.1%. See Economic Calendar.
Year over year, however, the PPI was down 1% in January.
Food prices fell 0.4% in January.
The Labor Department is scheduled to release consumer prices for January on Friday. Economists are expecting consumer prices to rise by 0.3%. Core consumer prices are expected to climb by just 0.1%.
Big increases in the prices of liquefied petroleum gas and gasoline were mostly behind the increase in energy prices. Liquefied petroleum gas prices climbed by 20.2% in January, while gasoline prices rose 15% at the producer level.
Meanwhile, U.S. stock futures pointed to a stronger start on Thursday, with traders looking past Hewlett-Packard's downbeat guidance after the lumps that the market has taken earlier in the week. See Indications.
