At her press conference yesterday, Janet Yellen dismissed the stronger than expected CPI report, as “noise”. She was quite clear. Inflation remains below the Fed’s target and is likely to stay there for some time. Inflation sensitive assets such as gold however rallied in reaction to this dovish stance from the Fed. If the CPI report from the US Bureau of Labor Statistics was “noise”, is there another indicator that can give us a sense of where prices are headed? Today’s Philly Fed report provided one such an indicator. The Manufacturing Prices Paid Index clearly showed firmer upstream prices. And ... (full story)