Markets had expected producer prices to increase 1.6% versus a year ago.
The data came as the Federal Reserve prepared to start a regular two-day meeting to deliberate on monetary policy.
The U.S. central bank is expected to leave interest rates steady near zero, but analysts will been keen to see if it maintains its pledge to keep borrowing costs ultra low for an "extended period." This comes as recent economic reports have pointed to a recovery that is becoming entrenched.
The Labor Department said gasoline prices rose 14.2% in the month, eclipsing a sharp moderation in food price increases.
Core producer prices, which exclude food and energy costs, rose a larger-than-expected 0.5% last month after surprising markets with a 0.6% fall in October. The core index had been forecast to rise 0.2% in November. Core prices last month were lifted by a rebound in prices for light motor trucks.
The core producer price index rose 1.2% measured on a year-on-year basis, versus a forecast for a 0.9% gain. The core index, excluding cars and light trucks, rose 0.2% from October. Light motor truck prices, which had depressed core producer prices in October, rose 4.2% last month, the largest gain since November 2006.
Household wealth rises but still far below peakRetail sales leap 1.3% in November
