US producer prices climbed an unexpectedly steep 0.5 per cent last month as energy costs mounted despite a fall in oil prices, a government report showed today.
However, excluding volatile food and energy prices, producer prices rose a mild 0.2 per cent, the US Labor Department said.
The gain in the overall producer price index - which measures prices received by farms, factories and refineries - handily outstripped forecasts on Wall Street, but the smaller increase in the so-called core rate matched expectations.
The department said energy prices climbed 1.8 per cent, building on a hefty 6.8 per cent increase in October. Petrol prices slid 0.7 per cent and home heating oil costs tumbled 2.3 per cent.
However, the cost of residential natural gas soared 6.2 per cent and electricity prices gained 1.2 per cent. Food prices, which shot up 1.6 percent in October, rose 0.4 per cent last month, the department said.
Over the last 12 months, producer prices have risen 5.0 per cent, the sharpest increase since the period ended December 1990. The gain largely reflects a steep rise in crude oil prices, which peaked at more than $55 a barrel in late October but have come down sharply since then.
Outside of food and energy, producer prices are up just 1.9 per cent in the 12 months through November.