According to Bloomberg News, the US inflation has perhaps hit the fastest in the last four decades, hit the quickest year ended December, and rise again by 0.4% from what it was a month earlier.
Another report from the Labor Department is anticipated to show the prices that have been paid to producers that surged by almost 10% in 2021. Reports about retail sales and sales in the retail sector are expected to come in soon.
The surge in inflation explains why US officials are striving for a faster normalization related to the monetary policy compared to when it was earlier scheduled. To add to the same, there is evidence that the labor market is tight, including a rise in wages and declining unemployment, as shown in the data Friday.
Those watching the Fed will eventually get greater clarity in the week to come on whether the liftoff in interest rates will come in as early as March, and the period when the central banks will likely start shrinking the balance sheet of $8.8 trillion, reports Bloomberg News.
