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US producer price rises unexpectedly in March due to healthcare, food costs

The broad-based increase in wholesale prices supports views that inflation will pick up this year

Reuters  |  Washington 

  US producer prices increased more than expected in March, boosted by rising healthcare and food costs, pointing to a steady buildup of inflation pressures. Most economists believe that strengthening inflation will prompt the Federal Reserve to raise interest rates three more times this year. The US central bank increased borrowing costs last month and forecast at least two more rate hikes in 2018. Producer prices have risen solidly since January, largely driven by the services components. Economists expect these increases to spillover into the consumer price index (CPI) ...

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First Published: Tue, April 10 2018. 23:48 IST