The CPI and PPI came in on schedule, and the results were warmer than expected, with the Producer Price Index showing an increase of 0.6% — nearly double the expected 0.3% rise. This is also reflected in the elevated, though expected, CPI reading of 0.6%. This is certainly being driven by increased fuel and energy costs.

This is further supported by U.S. Retail Sales showing an increase, though high gas prices and inflation are playing a major role in the rise in sales figures. As a result, the rate cuts the Federal Reserve had discussed in the past are now looking very unlikely to happen.