MNI BRIEF: Price Spikes Expected to Persist -Fed Beige Book

U.S. businesses told regional Fed banks they expect inflationary pressures to continue "over the coming months" after the Ukraine war lifted commodities prices and Covid lockdowns in China worsened supply chain disruptions, according to a Fed report on current economic conditions published Wednesday.

Most firms said they are passing rising input costs through to customers but some also saw negative impacts on their sales from higher prices. Demand for workers continued to be strong and consumer spending accelerated as Covid cases dropped, the Beige Book said.

Both economic activity and hiring increased at a moderate pace across the country from mid-March to mid-April, the Fed said.