The U.S. factory gate inflation in February rose 1.6 percent on a seasonally adjusted basis, following advances of 0.8 percent in January and 0.9 percent in December.
The largest increase in finished goods prices since a 1.9 percent advance in June 2009 was fuelled by prices of finished energy goods and finished consumer foods, the Bureau of Labor Statistics (BLS) said on Wednesday.
Prices for finished goods advanced 5.6 percent for the 12 months ended February 2011 on an unadjusted basis, the largest 12-month increase since a 5.9-percent rise in March 2010.
Prices for finished energy goods rose 3.3 percent in February, the fifth straight monthly increase while the index for finished consumer foods surged 3.9 percent.
Prices for finished goods less foods and energy moved up 0.2 percent, the third consecutive rise. Accounting for about twenty percent of the February increase was the index for passenger cars, which advanced 0.6 percent, BLS said.