Headline Fourth-Quarter 2017 Real Average Weekly Earnings Contracted;
Annual Real Earnings Growth Fell to a Five-Year Low

December Real Retail Sales Softened, but Headline Activity Surged for the Holiday Season,
Despite Contracting Real Earnings and Slowing Real Growth in Consumer Credit

Nominal Fourth-Quarter Sales Jump Reflected Higher Inflation and Insurance Payments

CPI-U Monthly Inflation Slowed to 0.15% in December 2017,
Annual Growth Slowed to 2.11%, with Core Inflation at 1.78%, Still Below FOMC Target

Final-Demand PPI Monthly Inflation Declined by 0.09% (-0.09%) in December 2017,
Annual Gain Pulled Back to 2.61%, from a 70-Month High of 3.07% in November 2017

Dampened PPI Inflation Reflected a Reversal from Hurricane-Disrupted Energy Prices, with
Monthly Goods Inflation at 0.00% and Services Down by 0.17% (-0.17%)

Despite the Booming Headline Numbers,
Prospects Continue to Darken for U.S. Economic and Financial-Market Activity
Tax Cuts and High Stock Prices Are Positive for the Economy, but
Do Not Mistake Inflation and a Declining Dollar for Increased Wealth or Income