U.S. inflation eating workers' wage gains

COLORADO SPRINGS, March 19 (UPI) -- With consumer prices rising 0.4 percent and average U.S. worker earnings dropping 0.3 percent, inflation is eating up U.S. wage gains, many workers say.

The trend is likely to continue, predicts Michael Darda chief economist of MKM Partners investment firm in Greenwich, Conn. "You're going to see continued (inflationary) pressure," he told The Christian Science Monitor.

Brian Fortinberry, who runs Front Range Barbecue in Colorado Springs, Colo., says he feels the brunt of inflation, with beef prices up 10 percent, along with fruit and lettuce. Gasoline has also gone up, adding to costs when his restaurant does a catering job, he says.

"We haven't increased our prices, but we're looking to do that," Fortinberry says. "Eventually you have to pass it along."

Federal Reserve policymakers meet Tuesday and Wednesday to discuss whether to raise interest rates to slow inflation. Raising rates might also cool the economy, analysts said.