01/18/2005

Inflation Creeping Along

Hello:

The Producer Price Index (measurement of wholesale prices) fell 0.7% in December, due primarily to lower energy prices. However, Core wholesale prices, which exclude food and energy costs, crept up 0.1%. Therefore, it would not surprise us if the Federal Reserve Bank possibly increased interest rates by another 1/4% at next month's meeting.

Is your donor looking to gift assets to a child or grandchild? The annual gift exclusion remains at $11,000 in 2005.

Terri G. Millson, CIMC President

Ray Dicius, GEPC LPL Branch Manager