Cost rises hit US producer prices

Higher food, car and electricity costs pushed US producer prices up by more than expected in January, figures show.

The producer price index rose by 0.3% during the month, above forecasts for a 0.2% rise, the Labor Department said.

The closely-watched index measures wholesale inflation at factories, farms and refineries across the US.

Separate figures also suggested that US consumer sentiment unexpectedly weakened in early February, hit by low stock prices and higher gasoline costs.

The University of Michigan's preliminary consumer sentiment index for February fell to 87.4 from 91.2 in January, Reuters reported.

Analysts had expected the index - which is used as a gauge of future US consumer spending patterns - to creep up to 91.5.

Meanwhile, the so-called core producer price index, which excludes food and energy costs, rose by 0.4% - the largest monthly increase since January last year, the Labor Department reported.