Wholesale prices in the U.S. rose by 0.2 percent in January for the first time in four months
According to a report by the Labor Department released Wednesday, wholesale prices in the U.S. rose by 0.2 percent for the first time in four months January, 2013. This came after a 0. 3 percent dip in prices in December. According to a Bloomberg survey undertaken by 74 economists, experts predict a 0.3 percent rise.
The global market has been struggling to kick up into a higher gear although the demand for commodities has begun to rise.
"Inflation should be contained in the near-term," said Christophe Barraud, an economist at Market Securities-Kyte Group in Paris. Based on data compiled by Bloomberg, he said he doesn't see "a rise in demand coming from the U.S. or Europe that would lead to much higher prices. Inflation is well below the Fed's target, and that's why the Fed is not worried today."
Pressure of pricing in the early stages of production rose by 0.8 percent in January after a 1.4 percent gain. However, major American companies have predicted that price gains may not be just as good this year.
"We haven't seen much price inflation," Todd Shelton, president of United Stationers Inc., which distributes office products, said during a Feb. 15 earnings call. "It's been a fairly stable environment over the last couple of quarters."
"Right now, we're looking at a modest inflationary environment for 2013," Vincent Petrella, chief financial officer of Lincoln Electric Holdings Inc., which manufactures welding products, said during an earnings call the same day.
