Washington — US producer prices rose more than expected in October, driven by a surge in the cost of services, and there were also signs of steady increases in underlying wholesale inflation. On Tuesday, the labour department said its producer price index (PPI) for final demand increased 0.4% in October a similar gain in September. In the 12 months through October, the PPI jumped 2.8%, which was the largest increase since February 2012. The PPI rose 2.6% year-on-year in September. Economists had forecast the PPI edging up 0.1% last month and increasing 2.4% from a year ago. Prices for services advanced 0.5% in October after increasing 0.4% in September. A 24.9% surge in margins for fuels and lubricants retailing accounted for almost half of the increase in the cost of services in October. That helped to offset a 4.6% drop in the cost of petrol. Wholesale petrol prices soared 10.9% in September in the aftermath of Hurricane Harvey, which struck Texas in late August and reduced refini...
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