U.S. producer prices see largest increase in 5 months

April 11 (UPI) -- The U.S. producer prices in March made the largest leap in five months, the Labor Department said in its monthly report Thursday.

The index for final demand jumped 0.6 percent for the month, largely on the back of rising gasoline costs. It was the largest increase since October. Growth in February was just 0.1 percent.

The bellwether index measures the average monthly change in prices for domestic producers.

Earlier statistics showed consumer prices increased more in March than they did for more than a year -- also driven by a jump in gasoline prices. The report said inflation, kept in check by slowing domestic and global growth, remained muted.

"The slowdown in the core PPI inflation reinforces the easing pattern seen in consumer prices," Gregory Daco and Jake McRobie, economists at Oxford Economics, told clients Thursday.

"This tame inflationary environment continues to provide the Fed with reason to remain patient as it assesses economic and inflation conditions."