U.S. producer prices recorded their highest increase in nine months in March. Economic growth remains moderate, so it probably wont start inflation. Some might say that the drastic winter might have distorted producer prices. A survey showed a significant increase in the share of small businesses raising their prices this month. Food prices have now risen for three straight months, causing a drought in the West.
I believe that this last winter might have had some effect on the producer prices, but it shouldn't be this drastic. Small companies and businesses also need to stop raising their prices so much. Citizens will not realize that the distorted producer prices are gone until the drought in the West is gone, and certain businesses lower their prices a little. One might believe that companies do this just to earn extra money, when in reality it is not their fault. Production is the problem because even the price of hay, hayseed, and oilseed have went up.The U.S. better react quickly, before there actually is a huge downfall.
http://www.reuters.com/article/2014/04/11/us-usa-economy-idUSBREA3A0WF20140411
