Sticky price inflation says rate hike could be closer

The Sticky Price Consumer Price Index (CPI) is calculated from a subset of goods and services included in the CPI that change price relatively infrequently. Because these goods and services change price relatively infrequently, they are thought to incorporate expectations about future inflation to a greater degree than prices that change on a more frequent basis.

Federal Reserve Atlanta publishes sticky price CPI that tracks changes in these particular goods and services.

• In April 2015, Sticky price consumer price index rose to highest level since 2008 crisis to 0.286% percent. Annualized sticky price CPI rose to 3.5%in April.

Some components of CPI indicates that FED might be closer to rate hike than market participants are predicting.

Current Federal funds rate future is indicating first rate hike very late this year around December or very early next year about January. However inflation and Janet Yellen's speech on Friday indicated that it might come as early as September, if not June.

With downtrend break, expect dollar to do well in the coming days. Dollar index is currently trading at 96.33, up 0.20%.