The Labor Department reported the U.S. producer-price index (PPI) surged 0.6 percent m-o-m in March after an unrevised 0.1 m-o-m increase in February.

For the 12 months through March, the PPI rose 2.2 percent compared to a 1.9 percent jump recorded in the prior month. That was the largest 12-month rise since a 2.5-percent advance in December 2018.

Economists had forecast the headline PPI would increase 0.3 percent m-o-m last month and 1.9 percent over the past 12 months.

According to the report, over 60 percent of the March advance in the index for final demand can be traced to a 1.0-percent m-o-m climb in prices for final demand goods. Meanwhile, the index for final demand services moved up 0.3 percent m-o-m.

Excluding volatile prices for food and energy, the PPI increased 0.3 percent m-o-m and rose 2.4 percent over 12 months. Economists had forecast gains of 0.2 percent m-o-m and 2.4 percent y-o-y, respectively.