WASHINGTON (Reuters) -U.S. monthly producer prices increased by the most in more than 12 years in March amid strong demand for goods and services, the latest sign of persistently high inflation that could compel the Federal Reserve to aggressively tighten monetary policy.

José Luis Rodríguez, a bricklayer in Argentina, cannot get by on his paycheck anymore with inflation set to have climbed more than 6% in March alone, the highest level in years, as spiraling food and fuel prices dent the value of salaries and savings.

Reckitt Benckiser Group said on Wednesday it had begun a process aimed at transferring ownership of its Russian business, becoming the first major personal goods maker to do so following the country's invasion of Ukraine.

The Japanese yen weakened past the 126 yen per dollar mark on Wednesday for the first time since 2002, while the euro was pinned at a one-month low as investors bought the U.S. currency after hawkish comments by Federal Reserve officials.

U.S. producer prices increased more than expected in March amid a surge in demand for services, suggesting inflation could remain high for a while.

Italian coffee maker Lavazza said on Wednesday it expected a challenging 2022 due to raw material price rises after reporting a strong increase in profits for 2021.