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Inflation watch: Wholesale prices rose 0.2% in December, less than expected

1. Wholesale prices rose 0.2% in December, less than expected. 2. Core PPI was flat, indicating easing inflation pressures. 3. Market futures rose following the PPI report, signaling positive investor sentiment. 4. Fed likely to pause interest rate changes based on this data. 5. Upcoming CPI data may influence future Fed decisions.

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FAQ

Why Bullish?

Lower-than-expected inflation could boost market sentiment, similar to past data releases. For instance, when inflation pressures eased in previous years, S&P 500 often rallied.

How important is it?

The PPI data has significant implications for inflation expectations and will influence Fed policies, crucial for market direction.

Why Short Term?

The immediate reaction to PPI can influence short-term trading strategies and market movements, evident from past rapid responses to inflation data.

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