By Lucia Mutikani

WASHINGTON (Reuters) -U.S. producer prices increased by the most in five months in November, but a moderation in the costs of services such as portfolio management fees and airline fares offered hope that the disinflationary trend remains in place.

A surge in the price of eggs amid an avian flu outbreak accounted for much of the bigger-than-expected rise in producer inflation last month. Other details of the report from the Labor Department on Thursday were, however, mostly favorable, prompting economists to lower their estimates for the personal consumption expenditures (PCE) price measures tracked by the Federal Reserve for its 2% inflation target.

The report, together with other data showing more people were collecting unemployment checks at the end of November relative to the beginning of the year as demand for labor cools, cemented investor expectations that the U.S. central bank would deliver a third interest rate cut next week.

"We see little evidence of pipeline price pressure in the producer price data," said Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics. "The foundations are in place for core PCE inflation to fall further next year, though the new administration will snatch defeat from the jaws of victory if they press ahead with higher import tariffs and deportations."

The producer price index for final demand jumped 0.4% last month, the largest gain since June, after an upwardly revised 0.3% increase in October, the Labor Department's Bureau of Labor Statistics said.

Economists polled by Reuters had forecast the PPI gaining 0.2% following a previously reported 0.2% rise in October.

In the 12 months through November, the PPI shot up 3.0% after increasing 2.6% in October. The government reported on Wednesday that consumer prices increased by the most in seven months in November, while a measure of underlying price pressures continued to run warmer over the past four months.

Wholesale goods prices surged 0.7%, accounting for nearly 60% of the broad-based monthly rise in the PPI, after edging up 0.1% in October. Food prices soared 3.1%, making up 80% of the increase in goods prices. Wholesale egg prices vaulted 54.6%, the most since June, after declining 20.6% in October.

Prices for fresh and dry vegetables, fresh fruits and melons also rose. Wholesale energy prices gained 0.2%. Excluding the volatile food and energy components, goods prices rose 0.2%, advancing by the same margin for five straight months.

SERVICES PRICES TAMER

Services prices rose 0.2% after climbing 0.3% in October. Portfolio management fees fell 0.6% after increasing 3.1% in October. Airline passenger fares decreased 2.1% after increasing 2.6% in the prior month. The cost of hotel and motel rooms dropped 3.1% after rising 2.8% in October.