U.S. wholesale inflation unexpectedly accelerated in February, with the producer price index rising by 0.7% after a 0.5% gain in the previous month, according to Bureau of Labor Statistics data. An underlying gauge of wholesale inflation that excludes food and energy increased 0. 5%. This increase follows a slowdown in consumer inflation in February before the Iran war, which has driven up energy prices and has negatively impacted consumer sentiment. Over half of the increase in the PPI was due to a 0.-5% advance in services costs, including rising costs for traveler accommodation, food wholesaling and investment services. Food prices also rose by the most since mid-2021, partly due to an increase in fresh and dry vegetables. The Federal Reserve is expected to keep interest rates unchanged at the end of its two-day policy meeting.