U.S. producer prices rose in March after four straight months of declines and there were signs of some firming in underlying inflation, which should keep the Federal Reserve on course to start raising interest rates this year.
The U.S. Labor Department said on Tuesday its producer price index for final demand increased 0.2% last month, with rising prices for goods accounting for more than half of the jump.
The PPI had declined 0.5% in February as profit margins in the services sector, especially gasoline stations, were squeezed, and transportation and warehousing costs fell.
In the 12 months through March, producer prices fell 0.8%, the biggest year-on-year decline since the revamped series started in 2009, after sliding 0.6% in February.
Economists had forecast the PPI rising 0.2% last month and falling 0.8% from a year ago.
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