49r--Richmond Fed says local inflation seen picking up
Manufacturing and service price rises in the fifth U.S. economic
district remain tame, but a pickup in inflation is expected over the next six months, an economist at
the Federal Reserve Bank of Richmond said on Tuesday.
''The price numbers remain very modest, both in the manufacturing sector and in the service sector,''
said the economist, Raymond Owens.
''However, if we look ahead to the next six months, both manufacturers and service sector
producers expect a pickup, and a fairly pronounced pickup, in the level of inflation,'' he said.
Owens said the manufacturing activity in the district remained robust, and businesses in the region
expect a continued rise in wages.
''Basically, manufacturers are looking for a stronger (economic) environment, they're looking for
some substantial wage pressures and they're looking for price pressures,'' he said.
The Richmond Fed is responsible for the nation's fifth economic district, which encompasses the
District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. |
