Swiss Producer & Import Prices Rise Less Than Forecast
- Author: Zachary Reyes Mar 15, 2017,
Mar 15, 2017, 15:59
In the 12 months through February 2017, the Producer Price Index has jumped 2.2 percent, which is the biggest such rise since March 2012.
On a monthly basis, producer and import prices slid 0.2 percent, in contrast to the expected increase of 0.4 percent.
Prices paid by USA businesses for goods and services posted their largest year-on-year gain in almost five years last month as rising oil prices and a weaker dollar continued to fuel inflationary pressures.
Much of the advance was due to the index for final demand services less trade, transportation, and warehousing, which increased by 0.5%.
"Steadily rising inflation gives the Fed more reason to lift rates tomorrow", said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto. Inpatient healthcare services increased 0.3 percent last month, while the cost of outpatient care rose 0.2 percent. For the 12 months ended in February, the index for final demand less foods, energy, and trade services climbed 1.8%. Fed policy makers, meeting Tuesday and Wednesday, are projected to raise interest rates as inflation moves higher and the job market continues to improve.
Excluding food and energy, prices rose 0.3% on the month following a 0.4% gain previously with the increase slightly higher than consensus forecasts of 0.2%. It is the core measure that gets more attention from investors. The current year-on-year gain was the largest in almost five years, an indication that inflation pressures are now present in the US economy.