US Producer Prices Rise More Than Expected on Services (3)

Prices paid to US producers rose in January by more than forecast, fueled by services and pointing to lingering inflationary pressures.

The producer price index increased 0.5%, the most since September, after a revised 0.4% increase in December, a Bureau of Labor Statistics report showed Friday. An underlying gauge that excludes food and energy advanced by the most since July.

Consecutive months of firm wholesale-price readings add to evidence of slow progress toward beating inflation. Higher duties on imported materials have encouraged many producers to raise prices or find other cost savings to protect margins.

Economists ...