CPI and PPI Come in Below Expectations, Potentially Giving FOMC Some Breathing Room

There was finally some relief after a steady stream of hot inflation data. After 10 months of upside surprises, CPI finally came in lighter than expectations on Wednesday. Core CPI was slightly down and essentially flat, Food was slightly up, and Energy had the biggest drop and made the downside surprise possible. The 8.5% headline number is still more than 4 times the Fed’s target, but the progress was a very welcome sign for markets. In a positive turn for the increasingly beleaguered consu...

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