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mpc: 12 In the United States, in addition to energy price increases, there had been signs of increasing inflationary pressure more generally, with further small increases in February to the inflation rates for core finished goods producer prices and core consumer prices. Bond prices suggested that inflation expectations had edged up since mid-February. Public debate had begun to focus more on the upside risks to US inflation (and their implications for the FOMC) and less on the possibility of price deflation. After a lengthy period in which rapid productivity growth had held cost pressures in check, unit labour costs had started to rise. Nevertheless, the exceptionally high rate of productivity growth in the US retail sector appeared to be continuing, so the low rate of pass-through of producer price increases to consumer goods prices might persist for some time.