US producer price inflation rose at its fastest pace in more than three decades last month as energy and vehicle prices rebounded, helping push wholesale costs higher, government figures showed on Tuesday.

The producer price index rose 2 per cent after a decline of 1.6 per cent in October, the strongest gain since 1974. There was also a sharp rise in core prices – excluding food and energy – which saw the fastest rise in 26 years, with an increase of 1.3 per cent last month.