US producer prices increase more than expected in January

WASHINGTON, Feb 27 (Reuters) - U.S. producer prices increased more than expected in January, likely as businesses passed on higher costs from import tariffs, suggesting inflation could pick up in the months ahead.

The Producer Price Index for final demand rose 0.5% last month after advancing by a downwardly revised 0.4% in December, the Labor Department's Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast the PPI gaining 0.3% after a previously reported 0.5% increase in December.