US producer inflation runs hotter in February, expected to accelerate further amid Iran war
www.reuters.com

... U.S. producer prices increased by the most in seven months in February, driven by higher costs for services and a range of goods, and could accelerate further as the war in the Middle East boosts oil prices and the pass-through from tariffs persists.

The stronger-than-expected Producer Price Index report released on Wednesday also suggested key inflation measures tracked by the Federal Reserve posted significant gains in February.

The U.S. central bank held interest rates steady at the end of its two-day policy meeting on Wednesday. Policymakers projected higher inflation, steady unemployment and only a single cut in rates this year.

Financial markets expected the Fed to resume rate cuts either in December or January 2027, LSEG data showed.

The U.S.-Israeli war with Iran, which started at the end of February, has sent oil prices surging more than 40%, and with it retail fuel prices like gasoline and diesel fuel. Economists expected the war's inflationary effect to show up in the March consumer and producer price reports to be released next month. ...