A report from the labour Department indicates that wholesale prices spiked 1.1% last month, or 3 times the value expected by surveyed economists. Core inflation, which excludes food and energy prices, rose 0.2%, down from 0.5% in February. Over the last year, wholesale prices are up 6.9% and core inflation stands at 2.7%, the highest rates in 2 years. Spiking wholesale prices are increasing concerns over the possibility of a return to stagflation, in which stagnant growth combines with rising prices to erode the value of wealth and earnings.
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