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Economics

U.S. Producer Prices Rise 10%, Reinforcing Fed’s Rate-Hike Path

  • PPI increases 0.8% from month earlier after 1.2% in January
  • Goods prices drove gains, mostly due to higher cost of energy
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Prices paid to U.S. producers rose strongly in February on higher costs of goods, underscoring inflationary pressures that set the stage for a Federal Reserve rate hike this week. 

The producer price index for final demand increased 10% from February of last year and 0.8% from the prior month, Labor Department data showed Tuesday. That followed an upwardly revised 1.2% monthly gain in January.