Surging energy costs drove \*country-region\*country-regionU.S.\*\* wholesale prices up nearly twice as much as expected in November while core prices posted their largest increase in more than a year.
The producer price index for finished goods leapt 1.8% on a seasonally adjusted basis in November, after rising by an unrevised 0.3% in October the Labor Department said Tuesday. Economists surveyed by Dow Jones Newswires had expected prices would climb by 1.0%.
Tuesday's data show the producer price index is up 2.4% from November 2008.
Core producer prices, which exclude volatile food and energy prices, rose 0.5% in November, driven up by higher prices for light motor trucks and cigarettes. The increase in core producer prices is the largest since October 2008 and is more than double the 0.2% rise economists surveyed by Dow Jones Newswires had expected.
Tuesday's data show energy prices rose 6.9%. in November following a 1.6% gain in October. November's increase was driven by surging gasoline prices, which rose 14.2% and by increases for home heating oil and liquefied petroleum gas.
Food prices were rose 0.5 %, as the index for fresh and dry vegetables advanced by 8.7%.
Prices of passenger cars rose 2.0% last month, while light truck prices jumped by 4.2%.
Prices of raw materials, known as crude goods, advanced 5.7% on the month. Core crude goods prices dipped 0.8%.
