Wholesale inflation spikes for 2005

Soaring energy prices pushed wholesale inflation up in 2005 by the highest amount since 1990.

The Labor Department reported that wholesale prices rose by a bigger-than-expected 0.9 percent in December, closing out a year when wholesale prices rose by 5.4 percent, the biggest advance since a 5.7 percent jump in 1990.

However, core inflation, which excludes energy and food, was much better behaved, rising by a tiny 0.1 percent in December and just 1.7 percent for the entire year, even better than the 2.3 percent increase in core prices in 2004.

Energy prices shot up 3.1 percent as gasoline prices skyrocketed by 12.3 percent last month.