MNI BRIEF: Inflation Picking Up, Fed's Beige Book Says

U.S. price pressures increased further since the the April FOMC meeting, with firms anticipating additional cost increases and charging higher prices in coming months, according to the Fed's anecdotal report on current economic conditions, released Wednesday ahead of the June policymaking meeting.

"Input costs have continued to increase across the board," especially in raw materials, freight, packaging, and petrochemicals, as a result of supply chain disruptions, the Beige Book said. "Strengthening demand, however, allowed some businesses, particularly manufacturers, builders, and transportation companies, to pass through much of the cost increases to their customers."

Overall business activity expanded at a moderate pace, according to information collected through May 25. Supply disruptions have propelled some firms' short-run inflation expectations to a record high last month and may start feeding longer run views, MNI previously reported.