Goaldeje Posted June 17, 2008 Share Posted June 17, 2008 Click Link for More: http://www.bloomberg.com/apps/news?pid=20601068&sid=aSNgKQT4C54w&refer=home Prices paid to U.S. producers rose more than forecast in May as fuel and food costs climbed. The 1.4 percent jump was the biggest gain since November and followed a 0.2 percent increase in April, the Labor Department said today in Washington. So-called core prices, which exclude energy and food, increased 0.2 percent. Companies are paying more for energy and raw materials, which erodes profits and makes it more likely they'll be forced to raise prices. The report reinforces Federal Reserve policy makers' concern that inflation pressures are picking up. ``It's going to further compress companies' profits,'' said Russell Price, senior economist at H&R Block Financial Advisors in Detroit, who had forecast a 1.1 percent increase in producer prices. ``We do have further inflationary pressures ahead as some energy prices will filter through.'' After the report, Treasuries stayed higher and the dollar remained little changed against the euro. The 10-year note yield was down 7 basis points to 4.20 percent at 9:03 a.m. in New York. The dollar traded at $1.5488 per euro from $1.5477 yesterday. A separate report from the Commerce Department showed housing starts fell 3.3 percent in May to a 975,000 pace, less than anticipated. Building permits, a sign of future construction, fell 1.3 percent to a 969,000 rate. Click Link for More: http://www.bloomberg.com/apps/news?pid=20601068&sid=aSNgKQT4C54w&refer=home Link to comment Share on other sites More sharing options...
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