"US Producer Inflation Surges on Strong Service Price Hikes in January"

US producer prices rose 0.3% in January, with a 0.9% year-on-year increase, driven by strong gains in service costs such as hospital outpatient care and portfolio management, raising concerns about inflation. Single-family housing starts dropped 4.7% due to harsh weather, but permits for future construction rose 1.6%. Financial markets are adjusting expectations for Federal Reserve interest rate cuts as the Fed continues to monitor inflation.