{"id":1253,"date":"2023-02-19T17:01:47","date_gmt":"2023-02-19T22:01:47","guid":{"rendered":"https:\/\/embarrdowns.com\/inflation-reads-higher-than-expected-ahead-of-fed-meeting\/"},"modified":"2023-02-19T17:01:48","modified_gmt":"2023-02-19T22:01:48","slug":"inflation-reads-higher-than-expected-ahead-of-fed-meeting","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/inflation-reads-higher-than-expected-ahead-of-fed-meeting\/","title":{"rendered":"Inflation Reads Higher Than Expected Ahead of Fed Meeting"},"content":{"rendered":"

The Federal Reserve is closely monitoring inflation data as it prepares to meet next month and likely raise interest rates by another quarter of a percentage point.[0]<\/a><\/sup> Markets expect that the Fed will raise rates twice more this summer, pushing the benchmark rate to above 5% before peaking in July.[0]<\/a><\/sup><\/p>\n

The Producer Price Index (PPI) and Consumer Price Index (CPI) will be released at 8:30 ET and 8:30 ET respectively. The PPI is expected to rise 0.4% for the month and 5.4% for the year, while the CPI is expected to rise 0.5% for the month and 6.2% for the year.[1]<\/a><\/sup><\/p>\n

The Commerce Department’s Retail Sales for January will be published at 8:30 ET.[0]<\/a><\/sup> An increase of 1.7 percent is the consensus, as opposed to the 1.1 percent decline in December.[2]<\/a><\/sup><\/p>\n

On Monday, stocks rose on expectations of the CPI release, with the Dow Jones Industrial Average up 20 points, the S&P 500 down 4.95 points and the Nasdaq 100 up 15 points.[1]<\/a><\/sup><\/p>\n

The latest inflation read came in a little hotter than expected.[3]<\/a><\/sup> The consumer price index for January increased by 0.5% from the previous month and was 6.4% higher than the same period of the year prior[4]<\/a><\/sup> Economists estimated that the Consumer Price Index (CPI) rose by 0.4% in January, leading to an annual increase of 6.2%.[3]<\/a><\/sup> Core CPI, which excludes energy and food, rose 0.4% and 6.2%, respectively, also exceeding expectations.[1]<\/a><\/sup> <\/p>\n

The higher-than-expected inflation read may have spooked investors into thinking the Fed will keep up its aggressive campaign against price increases.[3]<\/a><\/sup> This could lead to further rate hikes, so investors will be watching the CPI and PPI data closely.<\/p>\n

0. <\/span>“Retail sales, Cisco earnings, Shopify results: 3 things to watch By Investing.com” Investing.com Canada, 14 Feb. 2023, https:\/\/ca.investing.com\/news\/stock-market-news\/retail-sales-cisco-earnings-shopify-results-3-things-to-watch-2902781<\/a><\/a><\/p>\n

1. <\/span>“Producer prices, Applied Materials, Constellation Energy: 3 things to watch By Investing.com” Investing.com, 15 Feb. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/producer-prices-applied-materials-constellation-energy-3-things-to-watch-3004590<\/a><\/a><\/p>\n

2. <\/span>“Wall Street Might Open Broadly In Negative Territory” RTTNews, 15 Feb. 2023, https:\/\/www.rttnews.com\/3344275\/wall-street-might-open-broadly-in-negative-territory.aspx<\/a><\/a><\/p>\n

3. <\/span>“5 things to know before the stock market opens Tuesday” CNBC, 14 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/14\/5-things-to-know-before-the-stock-market-opens-tuesday-february-14.html<\/a><\/a><\/p>\n

4. <\/span>“The Club’s top 10 things Tuesday: CPI, volatile market, oil dips” CNBC, 14 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/14\/the-clubs-top-10-things-tuesday-cpi-volatile-market-oil-dips.html<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Federal Reserve is closely monitoring inflation data as it prepares to meet next month and likely raise interest rates by another quarter of a percentage point.[0]<\/a><\/sup> Markets expect that the Fed will raise rates twice more this summer, pushing the benchmark rate to above 5% before peaking in July.[0]<\/a><\/sup><\/p>\n

The Producer Price Index (PPI) and Consumer Price Index (CPI) will be released at 8:30 ET and 8:30 ET respectively. The PPI is expected to rise 0.4% for the month and 5.4% for the year, while the CPI is expected to rise 0.5% for the month and 6.2% for the year.[1]<\/a><\/sup><\/p>\n

The Commerce Department’s Retail Sales for January will be published at 8:30 ET.[0]<\/a><\/sup> An increase of 1.7 percent is the consensus, as opposed to the 1.1 percent decline in December.[2]<\/a><\/sup><\/p>\n

On Monday, stocks rose on expectations of the CPI release, with the Dow Jones Industrial Average up 20 points, the S&P 500 down 4.95 points and the Nasdaq 100 up 15 points.[1]<\/a><\/sup><\/p>\n

The latest inflation read came in a little hotter than expected.[3]<\/a><\/sup> The consumer price index for January increased by 0.5% from the previous month and was 6.4% higher than the same period of the year prior[4]<\/a><\/sup> Economists estimated that the Consumer Price Index (CPI) rose by 0.4% in January, leading to an annual increase of 6.2%.[3]<\/a><\/sup> Core CPI, which excludes energy and food, rose 0.4% and 6.2%, respectively, also exceeding expectations.[1]<\/a><\/sup> <\/p>\n

The higher-than-expected inflation read may have spooked investors into thinking the Fed will keep up its aggressive campaign against price increases.[3]<\/a><\/sup> This could lead to further rate hikes, so investors will be watching the CPI and PPI data closely.<\/p>\n

0. <\/span>“Retail sales, Cisco earnings, Shopify results: 3 things to watch By Investing.com” Investing.com Canada, 14 Feb. 2023, https:\/\/ca.investing.com\/news\/stock-market-news\/retail-sales-cisco-earnings-shopify-results-3-things-to-watch-2902781<\/a><\/a><\/p>\n

1. <\/span>“Producer prices, Applied Materials, Constellation Energy: 3 things to watch By Investing.com” Investing.com, 15 Feb. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/producer-prices-applied-materials-constellation-energy-3-things-to-watch-3004590<\/a><\/a><\/p>\n

2. <\/span>“Wall Street Might Open Broadly In Negative Territory” RTTNews, 15 Feb. 2023, https:\/\/www.rttnews.com\/3344275\/wall-street-might-open-broadly-in-negative-territory.aspx<\/a><\/a><\/p>\n

3. <\/span>“5 things to know before the stock market opens Tuesday” CNBC, 14 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/14\/5-things-to-know-before-the-stock-market-opens-tuesday-february-14.html<\/a><\/a><\/p>\n

4. <\/span>“The Club’s top 10 things Tuesday: CPI, volatile market, oil dips” CNBC, 14 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/14\/the-clubs-top-10-things-tuesday-cpi-volatile-market-oil-dips.html<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1252,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1253"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1253"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1253\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1252"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}