March 15 (Bloomberg) -- Prices paid to U.S. producers rose more than forecast in February, boosted by higher costs for energy, cigarettes and toys.
The 1.3 percent gain followed a 0.6 percent decline in January, the Labor Department said today in Washington. So-called core prices that exclude fuel and food rose 0.4 percent, double the increase in January and more than forecast.
The figures show stubborn inflationary pressures that Federal Reserve policy makers say pose the biggest risk to the economic expansion. The increase makes it harder for central bankers to lower interest rates even as growth slows and the subprime mortgage market threatens the broader economy.
The 1.3 percent gain followed a 0.6 percent decline in January, the Labor Department said today in Washington. So-called core prices that exclude fuel and food rose 0.4 percent, double the increase in January and more than forecast.
The figures show stubborn inflationary pressures that Federal Reserve policy makers say pose the biggest risk to the economic expansion. The increase makes it harder for central bankers to lower interest rates even as growth slows and the subprime mortgage market threatens the broader economy.
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