US producer prices rise for seventh straight month

The Producer Price Index (PPI) for finished goods rose a seasonally adjusted 0.8 percent in January, the U.S. Bureau of Labor Statistics (BLS) said on Wednesday.

The PPI, which is an inflationary indicator that measures the average change in selling prices received by domestic producers of goods and services, had risen 0.9 percent in December and 0.7 percent in November. The rise in January marks the seventh straight rise in finished goods prices.

Prices received by manufacturers of intermediate goods moved up 1.1 percent, and the crude goods index rose 3.3 percent. On an unadjusted basis, prices for finished goods advanced 3.6 percent for the 12 months ended January 2011, BLS said.

Higher prices for finished energy goods, which rose 1.8 percent, led the broad-based increase in the index for finished goods in January.

Also, the index for finished consumer foods moved up 0.3 percent in January, the fifth consecutive monthly increase. The Producer Price Index for intermediate materials, supplies, and components rose 1.1 percent.