Wholesale prices surge again and show inflation flowing through pipeline of the economy

Wholesale costs of goods and services accelerated in February for a third consecutive month, signaling persistent inflationary pressure even before a recent spike in oil prices. This development complicates the Federal Reserve's effort to bring inflation down and increases the likelihood of sustained or tighter policy, with implications for near-term inflation expectations and bond markets.

Analysis

Wholesale costs of goods and services accelerated in February for a third consecutive month, signaling persistent inflationary pressure even before a recent spike in oil prices. This development complicates the Federal Reserve's effort to bring inflation down and increases the likelihood of sustained or tighter policy, with implications for near-term inflation expectations and bond markets.