Economics
U.S. Producer-Price Inflation Stays Hot, Reinforcing Fed’s Plan to Start Raising Rates
- Business cost gauge rose above-forecast 9.7% from year earlier
- Monthly rise of 1% represents biggest increase since May
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Prices paid to U.S. producers jumped in January by more than forecast, pointing to persistent inflationary pressures as companies contend with supply-chain and labor constraints.
The producer price index for final demand increased 9.7% from January of last year and 1% from the prior month, Labor Department data showed Tuesday. The gain from December was the largest in eight months. The median forecasts in a Bloomberg survey of economists called for a 9.1% year-over-year increase and a 0.5% monthly advance.