US wholesale prices jump again in February

US wholesale prices rose more than expected in February, according to government data published Thursday, on a sharp monthly increase in the cost of goods paid by producers, fueled by higher gasoline prices.

The sharper than expected rise in producer prices will be closely followed by the US Federal Reserve, as it weighs the right time to start cutting elevated interest rates in its long-running battle against inflation.

"For the Fed, these data support a patient view on the future course of monetary policy," High Frequency Economics chief US economist Rubeela Farooqi wrote in a note to clients.

The producer price index (PPI) rose 0.6 percent in February, after rising by a higher-than-expected 0.3 percent a month earlier, the Labor Department said in a statement.

This was above market expectations of a 0.3 percent monthly rise, according to Briefing.com.

The index for final demand goods rose 1.2 percent, while the services sector rose a more modest 0.3 percent.

"One-third of the February advance in the index for final demand goods can be traced to a 6.8 percent increase in prices for gasoline," the Labor Department said in a statement.

The price of many other goods, including chicken eggs and jet fuel, also rose, while those of hay, hayseeds and oilseeds plummeted.