(fxcue news) - A report released by the Labor Department on Thursday showed producer prices in the U.S. increased by more than expected in the month of November. The Labor Department said its producer price index for final demand climbed by 0.4 percent in November after rising by an upwardly revised 0.3 percent in October. Economists had expected producer prices to inch up by 0.2 percent, matching the uptick originally reported for the previous month. The report also said the annual rate of producer price growth accelerated to 3.0 percent in November from an upwardly revised 2.6 percent in October. The annual rate of producer price growth was expected to rise to 2.6 percent from the 2.4 percent originally reported for the previous month. The bigger than expected monthly increase by producer prices was partly due to a surge by food prices, which spiked by 3.1 percent in November after coming in unchanged in October. The jump by food prices contributed to a 0.7 percent advance by the index for final demand goods, which accounted for nearly 60 percent of the broad-based rise in final demand prices. "Much of the increase in goods was driven by higher food prices, namely for eggs, so we don't see signs of a broad-based pop in inflation pressures," said Nationwide Financial Markets Economist Oren Klachkin. Meanwhile, the report said prices for final demand services edged up by 0.2 percent, as a 0.8 percent increase in prices for trade services was partly offset by a 0.5 percent decrease in prices for transportation and warehousing services. The Labor Department also said core producer prices, which exclude prices for food, energy and trade services, inched up by 0.1 percent in November after rising by 0.3 percent in October. The annual rate of growth by core producer prices came in at 3.5 percent in November, unchanged from the previous month. "While the underlying data quell fears of a new inflation surge, they don't suggest a quick fall to two percent either," said Klachkin. "Producer prices, and the broader inflation complex, are on an extended and bumpy journey to the Fed's goal." On Wednesday, the Labor Department released a separate report showing consumer prices in the U.S. rose in line with economist estimates in the month of November. The report said the consumer price index climbed by 0.3 percent in November after rising by 0.2 percent for four straight months. The increase matched expectations. The annual rate of growth by consumer prices ticked up to 2.7 percent in November from 2.6 percent in October, which was also in line with estimates. Excluding food and energy prices, core consumer prices still rose by 0.3 percent in November, matching the increases seen in each of the three previous months as well as expectations. The Labor Department said core consumer prices in November jumped by 3.3 percent compared to the same month a year ago, unchanged from October and in line with estimates.