There are early signs that businesses can pass cost increases on to their customers, according to the Federal Reserve’s latest survey of its business contacts.
“Manufacturers in a number of Districts reported having greater ability to pass through higher input costs to customers,” the Fed said in its Beige Book survey, published on Wednesday.
If businesses can pass on higher costs it will increase the chance that the surge in oil prices turns into broader inflation. The Beige Book reports are another sign that inflation may have passed its trough… (more)
