Wholesale prices spiked in January, rising 0.3% and above expectations in yet another sign that maybe inflation is proving harder to put to rest than the markets and the Federal Reserve had hoped. Economists had expected a 0.1% monthly increase in both the overall producer price index – a measure of prices paid by businesses – and the core, which leaves out often volatile energy and food costs. Increases in shelter costs accounted for more than two-thirds of the increase in the main index, although food prices also increased while energy costs fell. Investors had bought into the notion of the Federal Reserve cutting interest rates in May, but that was called into question by the stronger-than-expected news on inflation. “When will the recession start?” asks Peter Berezin, chief global strategist at BCA Research in a report out Friday morning.

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Persons: ”, Clark Bellin, John Ingram, Chris Giamo, Giamo, “, Peter Berezin Organizations: Federal Reserve, Labor Department, PPI, CPI, Dow Jones, Investors, ”, Crestwood Advisors, “, TD Bank, BCA Research Locations: U.S