The Labor Department reported that consumer prices rose 0.4% last month. This follows a 0.3% rise in October. While that may seem high, the good news is that the “core rate” was unchanged so Wall Street won’t panic. What’s happening is that the weak U.S. dollar is gradually driving food and energy prices higher. You can expect this trend to continue.
We also learned that housing starts rose 8.9% which matched Wall Street’s consensus. This is also good news and will hopefully help the sectors tied to new home construction.