U.S. producer prices up 0.1 pct

Core producer prices, which exclude energy and food costs, rose 0.2 percent in February compared with a forecast for a 0.1 percent increase. This followed a 0.4 percent rise in January.

WASHINGTON (Reuters) - U.S. producer prices rose less than expected in February after the pace of energy price increases slowed, government data on Tuesday showed, but core producer prices came in a bit above forecast.

The Labor Department said the seasonally adjusted producer price index, a gauge of prices received by farms, factories and refineries, increased by 0.1 percent last month versus a 0.8 percent gain in January.

Analysts polled by Reuters had expected a 0.4 percent advance in the headline index.

Compared with the same period last year producer prices were 1.3 percent lower, the largest decline since a 1.8 percent decrease in September 2002.

Core producer prices, which exclude energy and food costs, increased 0.2 percent in February compared with a forecast for a 0.1 percent increase. This followed a 0.4 percent rise in January. Core producer prices were 4.0 percent higher measured on a year-over-year basis.

A moderating in price increases for energy goods limited the rise in the headline PPI index in February, the data showed. Energy goods rose by 1.3 percent in February after climbing 3.7 percent the month before.

Capital equipment prices were up only 0.1 percent after a 0.5 percent increase in January, while consumer foods prices fell 1.6 percent.

(Reporting by Alister Bull; Editing by Andrea Ricci)