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Traders eye data this week for whiffs of inflation

Traders are watching two reports this week to see whether a whiff of inflation is creeping into the economy.

The Producer Price Index is released Wednesday at 8:30 a.m. ET, and the Consumer Price Index is released Thursday. Both of those reports were slightly higher than expected last month.

The PPI is expected to increase by 0.2 percent on the headline and by the same amount, when excluding food and energy. PPI rose 0.5 percent last month.