The Consumer Price Index (CPI) rose by 0.4% last month which was 0.1% more than Wall Street expetected. The core rate, which excludes volatile food and energy prices, rose by 0.2% and was also 0.1% higher than expectations.
This is very good news because we need inflation to boost consumer and business spending. If people expect prices to continue to fall, then they’ll put off their buying. Food prices actually fell slightly but gasoline prices rose by 8.3%. This helps many of my favorite energy stocks like Southwestern Energy (SWN).