--US December producer prices unchanged; core rate +0.3%
--US December producer prescription drug prices +0.6%
--US Dec wholesale passenger car prices +0.5%; light trucks +1.4%
--US Dec producer prices ex-energy +0.1%; energy prices -0.7%
--US December wholesale gasoline prices -8.4%; heating oil -1.2%
--US December natural gas prices up record 6.9%; electricity +1.2%
--US Dec food producer prices -0.4%; alcoholic beverages +1.2%
--US December capital equipment prices +0.2%, computers -2.0%
--US December intermediate producer prices +0.2%; core unchanged
--US December crude producer prices +8.7%; core unchanged
--US 2000 producer prices +3.6%; core rate +1.2%
By Andrew Williams, BridgeNews
Washington--Jan. 12--Strong increases in prescription drug, light truck and alcoholic beverage prices pushed the core U.S. producer price index up an unexpected 0.3% in December, overshooting the forecast of 0.1%. But because of a sharp drop in petroleum prices, the overall PPI was unchanged, coming in beneath the expected 0.1% increase.
* * * The December core increase, the sharpest since May, follows no change in the November index.
The Labor Department said prescription drug prices jumped 0.6%, the strongest increase since May, while light motor truck prices rose 1.4% and passenger car prices were up 0.5%. Wholesale alcoholic beverage costs climbed 1.2%.
Meanwhile, energy prices helped contain the overall producer price index.
The energy goods index was down 0.7%, led by a 8.4% plunge in gasoline costs and a 1.2% decline in home heating oil. However, wholesale residential natural gas prices skyrocketed 6.9%--a record increase, according to Labor--and residential electricity costs were up 1.2%. The overall index was also kept under wraps by a 0.4% decline in wholesale food prices. Prices for fresh and dry vegetables were down a sharp 26%, the steepest decline since January 1995.
Prices for computers fell 2.0%, but capital equipment costs were up 0.2%, boosted by light trucks and industrial supplies.
CRUDE AND INTERMEDIATE GOODS
Natural gas boosted both the intermediate and crude goods indexes. The intermediate goods PPI rose 0.2%, pushed higher by a record 33.9% jump in the price of industrial natural gas. Commercial electric power prices posted a 2.3% increase, the strongest since June 1993.
The PPI for crude goods was up 8.7%, the largest climb since August 1990, led by a 35.3% surge in natural gas prices.
Minus energy and food, the crude and intermediate goods indexes were both unchanged.