The Import Price Index surged 2.3% far above the 0.9% expected by the economists. Natural gas rose 28.8% and oil rose 7.3%. Striped out all energy the index rose 0.4%. This unexpected increase confirmed the high energy prices spur more inflation thus Fed will continue to keep raising rate to contain inflation. The market is slightly lower at the open reacting to the IPI number. On the positive side, the market did not react strongly to the downside and this may set up psychologically for tomorrow’s CPI number. The market will anticipate a really bad number for the CPI. So, we may see a rally if the number is slightly better than expected.

This entry was posted on Thursday, October 13th, 2005 at 10:16 am and is filed under Opening Bell, Stock Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.