WASHINGTON, May 14 - U.S. producer prices increased more than expected in April amid strong gains in the costs of services like portfolio management and hotel accommodation, indicating that inflation remained stubbornly high early in the second quarter.
The producer price index for final demand rose 0.5% last month after falling by a downwardly revised 0.1% in March, the Labor Department's Bureau of Labor Statistics said on Tuesday. A 0.6% rise in prices of services less trade, transportation and warehousing accounted for 70% of the jump in services inflation. That mostly reflected a 3.9% surge in portfolio management fees amid a recent stock market rally, which followed a 0.6% rise in March.
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