Wholesale prices in the U.S. accelerated again in February, according to the Associated Press, the latest sign that inflation pressures in the economy remain elevated.
The Labor Department said today that its producer price index — which tracks inflation before it reaches consumers — rose 0.6% from January to February, up from a 0.3% rise the previous month. Measured year over year, producer prices rose by 1.6% in February.
The figures could present a challenge for the Fed, which is counting on cooling inflation as it considers when to cut its benchmark interest rate, now at a 23-year high.
Today’s data also showed that underlying inflation picked up last month. Excluding volatile food and energy costs, “core” wholesale prices rose 0.3%, down from a 0.5% jump the previous month. Compared with a year ago, core prices climbed 2%, the same as the previous month. Core inflation, which tends to provide a better sign of where inflation may be headed, is watched particularly closely.
