The week was relatively light following the release of the prior inflation data and the FOMC rate decision. The Federal Reserve decided to keep its overnight borrowing rate unchanged and has indicated no plans to make changes in the near term.

With the inflation reports showing their cards, the Consumer Price Index has shown to be in line with expectations, but unexpectedly the Producer Price Index has come in substantially higher than expected.

Unemployment data has been released, revealing an interesting trend: different demographic groups are facing varying, and in some cases significantly higher, levels of unemployment.

The PCE Index inflation data has been released on schedule, and it paints a rather grim outlook for the future. Inflation has reached a three-year high, and given that it is the Federal Reserve’s preferred measure of inflation, it does not bode well for any impending rate cuts and may even raise the possibility of future rate increases.

This is somewhat offset by consumer spending having exceeded expectations, but this appears to be entirely related to high fuel prices, whether consumers want to spend that much or not.