THE LEDGER-STAR
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, January 10, 1995 TAG: 9501100488
SECTION: FRONT PAGE: A10 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Short : 34 lines
Wholesale prices rose a moderate 1.7 percent in 1994, as a drop in energy prices helped keep inflation under control at year's end.
The Labor Department reported today that its Producer Price Index edged up 0.2 percent in December to close out the fourth straight year of tame price increases. The PPI rose 0.2 percent in 1993 and 1.6 percent in 1992.
Inflation has remained benign despite a surging economy and declining unemployment that could send wages higher this year. Analysts said in advance of today's report that while the cost of living for Americans is only creeping upward, there are worrisome clouds on the horizon.
``Looking backward, inflation has been remarkably well-contained,'' said Laurence Meyer, head of a forecasting service in St. Louis. ``But looking forward, everybody is anxious.''
The December increase in the PPI, which measures inflation pressures before they reach the consumer, followed a 0.5 percent rise in November and a 0.5 percent decline in October.
The December increase in wholesale prices matched analysts' predictions.
The Consumer Price Index to be announced Wednesday is expected to provide more good news, showing a rise of around 2.7 percent for 1994.
KEYWORDS: INFLATION by CNB