(January 12) – “Wholesale prices surged 3.6% last year, the biggest increase in a decade, despite a moderation in price pressures in December,”The New York Times is reporting today.

“The Labor Department reported that its producer price index, which measures inflation pressures before they reach the consumer, was unchanged in December despite the fact that natural gas prices soared by a record 6.9% last month.

“The unchanged figure for wholesale prices overall in December was a better-than-expected showing. Many analysts had been looking for an increase of 0.3% because of the steep rise in natural gas prices.

“However, gasoline costs and home-heating-oil prices actually fell last month, helping to offset the big jump in natural gas bills. Homeowners in many parts of the country were shocked with $200-plus natural gas bills in December.

“The 3.6% rise in wholesale prices followed a 2.9% increase for 1999 and was the worst showing for this inflation gauge since a 5.7% rise in 1990.

“Consumer prices have also accelerated this year but economists have not sounded overall inflation alarms because much of the deterioration is occurring because of the steep run-up in world energy prices, something they do not expect to see repeated in 2001.