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US Producer Inflation Down

US Producer Inflation DownUS Producer Inflation Down

US producer prices fell in February for a fourth straight month, pointing to tame inflation that could argue against an anticipated June interest rate hike from the Federal Reserve, Reuters reported. The Labor Department said its producer price index for final demand declined 0.5% as profit margins in the services sector, especially gasoline stations, were squeezed, and transportation and warehousing costs fell. “The underlying message appears to be that pipeline inflationary pressures remain quite weak, even as energy prices have stabilized and gasoline prices have drifted modestly higher,” said Millan Mulraine, deputy chief economist at TD Securities in New York.

Financialtribune.com