US producer prices post biggest gain in five months, businesses passing on tariffs
WASHINGTON, Jan 30 (Reuters) - U.S. producer prices increased by the most in five months in December amid some pass-through from import tariffs, suggesting inflation could pick up in the months ahead and allow the Federal Reserve to keep interest rates steady for a while.The larger-than-expected rise in the Producer Price Index last month reported by the Labor Department on Friday was driven by a surge in services, mostly trade services, which measure changes in margins received by wholesalers and retailers. There were also strong increases in the prices of hotel and motel rooms as well as airline fares. But goods prices were unchanged.