US Producer Prices See Steep Rise in February, Keeping Inflation High and Stoking Economic Concerns

Wholesale prices in the US accelerated again in February, showing inflation pressures remain high and might not cool soon.

Producer price index rose 0.6% from January, driven by higher wholesale gas and grocery prices. Core inflation was higher than expected.

Persistently high inflation could threaten Biden's re-election bid, as Americans view economy gloomily despite cooling consumer inflation.

Retail sales grew 0.6% February after sharp 1.1% fall January, pointing to cooling consumer demand as pandemic savings dwindle.

Fed expected to cut rates in June but could slip as latest inflation data shows prices still rising; will issue new forecasts next week.