COLLEEN MCEDWARDS, CNN ANCHOR: As we just told you a couple of minutes ago, the Labor Department has just came out with January's Producer Price Index, the PPI. CNN's Fred Katayama is in Washington with more -- Fred.</s>FRED KATAYAMA, CNN CORRESPONDENT: Good morning, Colleen. Well, inflation rope sharply at the wholesale level in January -- that's the prices that companies pay. The Producer Price Index rose 1.1 percent in January. That is more that five times the increase in December, and much higher than what Wall Street had been anticipating. Now once you strip out the volatile food and energy prices, you're left with what's called the core PPI, the core Producer Price Index. That also rose sharply. That was up 0.7 percent, much higher than the o.1 percent in December -- Colleen.</s>MCEDWARDS: So what pushed up that core?</s>KATAYAMA: Well, basically energy and food prices, the two volatile segments that make up the Producer Price Index. Liquefied petroleum gas rose 15.3 percent in January, residential natural gas, which at of people can probably relate to, rose 11.3 percent. And as for food, vegetable prices rose 16.2 percent, after falling 26 percent in December -- and I hope you're not a big fan of squash, Colleen, because those prices more than doubled.</s>MCEDWARDS: Hate squash. Thanks, Fred.</s>KATAYAMA: Lucky you.
Labor Department Announces January's Producer Price Index Up 1.1 Percent