U.S. stocks opened slightly higher on Friday following an inflation report today that shows the consumer price index (CPI) was unchanged in June while U.S. retail sales for June decreased o.2 percent, missing the consensus estimate of 0.1 percent from briefing.com.
Fed members are watching inflation closely as it impacts their willingness to raise interest rates in 2017 which comes after the Fed has already made 2 interest rate increases this year.
Yesterday, Fed Chair Janet Yellen provided a dovish speech that suggests the Fed is in no hurry to raise interest rates as Fed members watch for inflation trends in the economy with inflation remaining below the Fed’s 2 percent target.
Today’s CPI inflation report shows that inflation change in June was unchanged in June while the CPI index for all items, minus food and energy, increased 0.1 percent in June, its third consecutive monthly increase.
Weak energy prices continue to drag on the energy index.
The energy index decreased 1.6 percent in June, after dropping 2.7 percent in May.
The gasoline index declined 2.8 percent in June after decreasing 6.4 percent in May.
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