The pace of the U.S. recovery picked up somewhat in the past two months, sparking price pressures as businesses contended with worker scarcity and rising costs, the Federal Reserve said.
"The national economy expanded at a moderate pace from early April to late May, a somewhat faster rate than the prior reporting period," the U.S. central bank said in its Beige Book survey released Wednesday. "Overall price pressures increased further since the last report. Selling prices increased moderately, while input costs rose more briskly."
The report was based on information collected by the Fed's 12 regional banks on or before May 25 and compiled by the Cleveland branch.
Diane Swonk, chief economist at Grant Thornton, wrote in a tweet that the survey shows demand continues to improve faster than supply across the board, which is showing up in prices. "It's going to be a hot summer for prices and wages — real test is whether we see shortages persist only 4Q," she said.