U.S. wholesale prices surged on higher food and energy prices during March, but core inflation retreated to a mild rate after two months of big increases.

The producer price index for finished goods rose 1.1% on a seasonally adjusted basis after a 0.3% increase in February, the U.S. Labor Department said today.

The core index, which excludes food and energy items, climbed 0.2% last month, seasonally adjusted. It rose 0.5% in February and 0.4% during January.

Economists had called for a 0.6% increase in the overall index and a 0.2% increase in the core index.

In the 12 months ending in March, producer prices climbed 6.9% on an unadjusted basis. In the 12 months ending in February, prices were up 6.4%.

The producer-price data showed energy prices in the wholesale sector increased 2.9% last month, after rising 0.8% in February. Gasoline last month rose 1.3%. Residential natural gas was up 4.2%. Diesel fuel jumped 15.3% and home heating oil climbed 13.1%.

Food prices advanced 1.2% in March, after falling 0.5% in February.

The producer-price data revealed bigger increases of prices for goods down the production pipeline. Raw materials rose 8.0% in March, up from a 3.7% rate of increase in February. Core crude goods increased 3.5% in March. Semi-processed goods rose 2.3%, compared to February’s 0.8% increase. Core intermediate goods increased 1.1% in March.