WASHINGTON -- U.S. wholesale prices increased in February at the fastest pace in five months, driven by rising gasoline costs.

The producer price index, which measures how much manufacturers and wholesalers pay for finished goods and materials, increased a seasonally adjusted 0.4%, the Labor Department said Thursday.

Gasoline prices, up 4.3%, pushed the increase. Overall energy prices rose 1.3%, the first gain since November.

Removing volatile energy and food components, producer prices were up a more mild 0.2%.

Economists surveyed by Dow Jones Newswires had forecast overall wholesale prices would climb 0.5% on a month-to-month basis, while core producer prices were expected to rise by 0.2%.

Earlier this week, Federal Reserve officials said increasing oil and gasoline prices "will push up inflation temporarily."

However, in their policy statement, Fed officials said they expect annual inflation will stay at or below the central bank's 2.0% target. The Fed struck a similar tone a year ago when oil and food were getting more expensive, and indeed prices moderated in the second half of 2011.

In January, the Fed projected annual inflation at between 1.4% and 1.8% for 2012 and between 1.4% to 2.0% for 2013.

The Labor report showed wholesale prices were 3.3% higher last month than in February 2011. That's well down from the 7.1% annual increase recorded in July.

Year over year, prices were up 3.0% when removing energy and food costs.

Moderate inflation would give the Fed leeway to pursue additional stimulus in an effort to increase employment and prop up investment. However the labor market is improving, adding more than 200,000 nonfarm jobs for three consecutive months. That has led some economists to say more bond buying or other measures are not necessary.

In January, wholesale prices increased 0.1% from the prior month, and underlying prices, excluding energy and food, rose 0.4%.

In February, food costs decreased by 0.1%, as vegetable, dairy and meat prices all fell.

Prices for intermediate goods--which are semifinished goods like lumber or flour that require further processing--grew by 0.7% last month. Meanwhile, prices of raw materials, known as crude goods, increased by 0.4% in February.

The Labor Department's producer price index report can be accessed at: http://www.bls.gov/ppi