From Deseret News archives:
Inflation, energy prices climb
Food costs also make bigger jump than analysts anticipated
Energy traders, meanwhile, rewrote the record books again Tuesday, pushing oil futures past $114 a barrel as gasoline and diesel prices struck new highs of their own at the pump.
The Labor Department reported that wholesale prices rose by 1.1 percent last month, the largest increase since a 2.6 percent rise last November. The November gain in the Producer Price Index was the biggest one-month jump in 33 years.
Analysts had expected a much more moderate 0.4 percent rise in wholesale prices for the month. However, food costs, which had fallen by 0.5 percent in February, leapt by 1.2 percent last month, propelled upward by big gains in vegetables and beef and the biggest increase in rice prices in more than five years. Those were far higher increases in food prices than expected.
Core inflation, which excludes energy and food, was better behaved last month, rising by just 0.2 percent, down from a worrisome 0.5 percent rise in February.
But with crude oil prices rising, analysts said consumers should be braced for more bad inflation news to come.
Light, sweet crude for May delivery jumped as high as $114.08 a barrel shortly after regular trading ended Tuesday on the New York Mercantile Exchange. That is nearly $2 above an intraday high set last week.
Concerns about insufficient global supply, stoked by a high-profile report by the International Energy Agency that said Russian oil production dropped this year for the first time in a decade, was largely responsible for the surge. Oil prices rose as high as $113.99 a barrel during the regular session before settling at $113.79, up $2.03 from Monday's record close of $111.76 a barrel.
Prices at the pump also charged ahead. Retail gasoline prices rose to a new average national record of $3.386, according to AAA and the Oil Price Information Service. Prices were highest in California, where mid-range and higher grades are now averaging more than $4 a gallon.
Diesel prices at the pump jumped to $4.119 a gallon, also a record, setting the stage for even higher prices on food and other goods transported by truck, ship and rail.
Recent comments
The so-called energy crisis is not so much an energy crisis as it is...
Earl | April 16, 2008 at 8:52 a.m.
The Dems blocked Bushs' energy policy, and now blame him for the...
Dave | April 16, 2008 at 8:23 a.m.
So who is surprised by this? You gotta be kidding.
When Obama is...
russ | April 16, 2008 at 5:58 a.m.
- Grizzlies lend forward to AHL team 2:06 a.m.
- Basic Sports Training clinic Saturday 2:06 a.m.
- Tony Finau reaches Big Break finale 2:05 a.m.
- Chicken-lovers dance for free food 2:02 a.m.
- Kansas' Secret Santa gives away $ 1:24 a.m.
- 75 hostages seized in Phillippines 1:24 a.m.
- Gates: US to be Afghan partner 1:23 a.m.
- Al-Qaida claims credit for blasts 1:23 a.m.
- Utah Utes campus briefs 12:39 a.m.
- SUU campus briefs 12:37 a.m.
- Hot Rod behind mic for Lakers
- Panel passes BCS playoff bill
- Max Hall wants to look ahead
- Cougars use depth to beat ASU
- Crash landing next to I-15
- Psychologist: Mitchell schizophrenic
- Non-BCS schools not given fair shot
- Palin signs books, chats with fans
- Jazz go up against 'the best'
- Many seek to wipe clean misdeeds
- Letters: Global warming a lie
229 - TCU to play Boise in Fiesta Bowl
206 - BYU football: Bronco weighs in on Hall
184 - Cougars going back to Vegas
150 - Utah/BYU rivalry can be more civil
147 - Andersen apologizes for Jordan hoax
138 - Max Hall wants to look ahead
119 - Revive full food tax?
100 - Yet again, we learn BCS is a big joke
94 - Palin signs books, chats with fans
94
It's probably too late to get them to soldiers stationed overseas in...
Love him or hate him, Utah Sen. Orrin Hatch knows how to get attention.
Top 5 Players in minutes played: Utah 1 Fr, 2 Jr, 2 Sr Jr Carlon Brown...
Yep "self righteous" if the rest of us who don't rubber neck left, you would...
Thank you for keeping the team here for all of these years, and for always...
of misery, inconsistency, road games losses and of course, NO TITLE ! Long...
Glad to hear about Matt and the others who demonstrate you can play at a high...
I guess they forgot that God made clothes for Adam and Eve and that was...
and good luck.
There is an inherent problem in any rating system -- it takes into account...
Give Phillips some credit. He was 5/5 in field goals in the YBU game, and the...
Mr. Bender's kind of thinking doesn't even acknowledge that the world is...

