Inflation rate troubling; higher interest rates ahead?
The Labor Department’s Producer Price Index increased by 0.9 percent in December.
Excluding volatile food and energy prices, the index advanced by 0.2 percent. Still, the gains were greater than expected.
They added to expectations that the Federal Reserve is not likely to cut interest rates over the next few months as the economy still shows some risks of inflation.
On the upside, they probably won’t raise interest rates, either, at least not until mid-year. At least, that’s what I think.
