US producer prices increased more than expected in March, boosted by rising healthcare and food costs, pointing to a steady buildup of inflation pressures.
Most economists believe that strengthening inflation will prompt the Federal Reserve to raise interest rates three more times this year. The US central bank increased borrowing costs last month and forecast at least two more rate hikes in 2018.
Economists expect that a tightening labor market, weak dollar and fiscal stimulus in the form of a US$1.5 trillion tax cut package and increased government spending will push inflation toward the Federal Reserve's two per cent target this year.
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Look like when the Economy is growing - the fiscal stimulus in the form of a US$1.5 trillion tax cut further accelerate the Economy to overheat.
It is another unwise move by Trump that triggering an accelerated runaway "Boom and Bust" phenomenon.
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