Wholesale prices spike 3.2% in November

The producer price index, a measure of wholesale prices, increased 3.2% in November, as energy prices hit a record high according to a Department of Labor report. The increase marked the largest change in the index since August 1973, when the PPI increased 3.5%. Wholesale energy prices rose 14.1% in November, beating the prior record growth of 13.4% in January 1990. Food prices were unchanged following a 0.1% increase in October. The core producer price index, which excludes food and energy, grew 0.4%. In a report from the Department of Commerce, retail sales rose 1.2% in November after increasing 0.2% in October, marking the strongest sales pace since May. Retail sales have risen 6.3% since November 2006. Gas station sales rose 6.8% in November, marking the largest gain since September 2005. Excluding gasoline, retail sales increased 0.6%. In another Department of Commerce report, business inventories increased 0.1% in October, short of 0.7% increase in sales. The increase, which follows a 0.4% increase in September, was the weakest showing since inventories were unchanged in March.