U.S. producer prices rose in November as gasoline prices surged and the cost of other goods increased, leading to the largest annual gain in nearly six years.
The fairly strong report from the Labor Department on Tuesday suggested a broad acceleration in wholesale price pressures, which could assuage concerns among some Federal Reserve officials over persistently low inflation.
The Labor Department said its producer price index for final demand increased 0.4 percent last month, advancing by the same margin for three straight months. In the 12 months through November, the PPI shot up 3.1 percent. That was the biggest gain since January 2012 and followed a 2.8 percent rise in October.
Economists had forecast the PPI rising 0.3 percent last month and increasing 2.9 percent from a year ago.
A key gauge of underlying producer price pressures that excludes food, energy and trade services rose 0.4 percent last month. The so-called core PPI had increased by 0.2 percent for two straight months. It rose 2.4 percent in the 12 months through November, the largest gain since the series started in August 2014, after increasing 2.3 percent in October.
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