Fed Sees Weakening US Economy, Rising Prices (Reuters)

(Reuters) -- Economic conditions are weakening across much of the United States at the same time food, fuel and raw material prices are increasing, the Federal Reserve said.

  In its anecdotal Beige Book summary of regional economic conditions released Wenesday , the Fed said manufacturers reported widespread increases in raw material prices and planned to raise selling prices to recover those costs.

  "In particular, price increases were consistently reported for food products, fuel and energy products, and many raw materials," the U.S. central bank said.

  "More specifically, increases in the price of chemicals, metals, plastics and other petroleum-based products were commonly cited," In a further sign that inflation pressures could be building, the Fed said that despite generally weaker labor markets, there were some reports of wage pressures and continuing shortages of skilled workers.

  There were few bright spots in the Fed's summary of economic activity between March 5 and April 7, when the current report by the New York Fed was compiled.

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