Cool-ish PPI reading paves way for CPI report 

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Markets got a pre-CPI treat on Tuesday in the form of a mildly cool PPI reading. 

Producer prices in December rose 0.2%, down slightly from analysts’ projection of a 0.4% rise. Core PPI, which excludes food and energy, was in line with expectations and unchanged from November (+0.3%). 

The report generally sets the stage well for tomorrow’s more-closely-watched CPI reading, slated to be published at 8:30 am ET. Still, analysts caution investors not to take a cool reading as a sign for future rate cuts. 

“We’ve seen a stubbornness in inflation over the last few quarters,…

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