A hotter reading in US producer prices has strengthened bets that the Federal Reserve could raise interest rates as early as next week, with traders now pricing in roughly a 70% chance of a quarter-point hike, according to a Reuters report.
Producer prices rose 5.4% in the 12 months through August. While the overall increase was in line with economists' expectations, details of the report suggested some of the recent progress on inflation may be reversing.
