Last week closed with inflation and retail sales data from the US, both underwhelming forecasts, but were better than the previous reports. Comsumer Price Index News Release (5/12)The consumer price index grew 0.2% when comparing the CPI in April with the CPI in March. Economists' average forecast was 0.3%. Previously, during the March month, there was a -0.3% rate of deflation compared to the CPI in February. Core inflation had a similar story, missing forecast but still better than the previous month's. The core CPI grew 0.1% vs. forecasts around 0.2%. The previous month's core CPI deflated at -0.1%. Advance Monthly Sales for Retail and Food Services, April 2017 (5/12)Retail sales grew 0.4% in April compared to March. The average forecast was 0.6%. The March reading was revised up to 0.1% from a -0.2% reading. Meanwhile, core retail sales came in at 0.3% vs. forecast of 0.5%. The previous reading was revised up to 0.3% from a flat reading of 0.0%. Both the inflation and retail sales reports suggest that the March reports could have been one-offs. There is no trend of deflation or softer retail sales. While Friday's data releases were not spectacular, it should support the Fed's guidance for 2 more rates hikes in 2017.