The US Producer Price Index ( PPI) measuring inflation at the wholesale level surged 0.7 percent in March, propelled by rising prices of gasoline and other energy products, the US Labor Department reported Tuesday.

The 0.7 percent rise was the biggest monthly advance since a 1. 5 percent surge last October. The rise compares with increases of 0.4 percent in February and 0.3 percent in January.

Data showed that energy prices increased 3.3 percent in March, the biggest advance since a 5.7 percent rise last October. Gasoline prices rose 5.3 percent, the biggest jump since a 12.8 percent gain last October. Home heating oil prices were up 15.7 percent while residential natural gas prices rose 2.3 percent.

Food prices increased 0.3 percent in March compared with an advance of 0.8 percent in February. The 0.3 percent gain was led by a 10.1 percent jump in vegetable prices.

Excluding volatile energy and food, the core PPI increased by a moderate 0.1 percent in March, the same as February.

For the past 12 months, wholesale prices have risen by 4.9 percent, the fastest 12-month pace since a gain of 5.0 percent in the 12 months ending last November.

Source: Xinhua