US producer prices surged higher in March as demand for services increased the most in four years, government data released Friday showed.
The Labor Department said its producer price index rose 0.5 percent in March, after a slight 0.1 percent dip in February.
Excluding food and energy prices, so-called core PPI increased 0.1 percent.
The March jump in producer prices was much stronger than the 0.1 percent rise expected by analysts, while core CPI matched estimates.
Final demand prices in services jumped 0.7 percent led the overall prices gain. It was the largest increase since an 0.8 percent gain in January 2010.
Prices for final demand goods were unchanged.
On an annual basis, PPI climbed 1.4 percent, the strongest gain since August but still well below the 2.0 percent overall inflation target set by the Federal Reserve for price stability...