US producer prices rose more quickly than expected last month

14th Mar 2024 12:53

(Sharecast News) - Wholesale inflation in the U.S. rose more quickly than anticipated, due in large part to higher energy prices.

According to the Department of Labor, in seasonally adjusted terms producer prices rose by 0.6% month-on-month and by 1.6% year-on-year.

Economists had forecast increases of 0.3% and 1.1%, respectively.

Food prices rose by 1.0% on the month and those for energy goods by 4.4%.

Gains in the latter followed four consecutive monthly drops.

Excluding food and energy, producer prices were up by 0.3% over the month (consensus: 0.2%).

"On balance, the CPI and PPI reports this week reduce our subjective odds that the Fed will begin its easing cycle at the May Federal Open Market Committee meeting, as is the case in our baseline," said Matthew Martin at Oxford Economics.

"Still, with broader evidence of decelerating wage growth and further disinflation in the pipeline from market rents, we still believe the Fed will begin cutting rates around mid-year."

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