A cooler read on Tuesday's consumer price report may give the Federal Reserve a little more leeway in dialing down efforts to slow the economy and hiring. A strong reading after estimates of 2022 inflation were revised up last week would reinforce plans to keep rates high and possibly increase them.
In European trading, the FTSE 100 in London rose 0.4% at midday, while the DAX in Frankfurt was up 0.5%. The CAC 40 in Paris climbed 0.9%. The U.S. government revised December inflation to 0.1% over the previous month, up from the earlier estimate of a 0.1% decline. The November figure was raised to 0.2% over the previous month from 0.1%.The yield on the 10-year Treasury bond, or the difference between the market price and the payout at maturity, widened to 3.73% on Friday from 3.66%.