WASHINGTON - Producer prices soared 1.1% in December, led by a 3.7% increase in energy goods prices, while core prices increased 0.2% on rising prices for cigarettes, the Labor Department reported Thursday.
Economists expected producer prices would rise 0.8% and core prices, which exclude food and energy, would increase 0.3%, according to the median estimate from Thomson Reuters.
The 1.1% December gain followed an unrevised 0.8% increase in November. For the 2010 calendar year, producer prices increased 4.0% and core prices rose 1.3%.
The 3.7% climb in energy goods prices in December came as home heating oil prices spiked 12.3% and gasoline prices jumped 6.4%. However, residential natural gas prices declined 0.3%.
Meanwhile, finished consumer foods saw some of the biggest percentage increases, as prices for fresh and dry vegetables shot up 22.8% -- as cauliflower prices increased 204.0% and broccoli prices rose 122.7%.
Also within the consumer foods category, fresh fruits and melons prices increased 15.4%, including a 137.6% spike for cantaloupes.
Cigarette prices increased 2.9%, communication and related equipment prices rose 0.6% and consumer plastic products upticked 0.3%. Price for light motor trucks rose 0.3%.
