With so many Americans dropping out of the work force, the unemployment rate is not an entirely accurate metric of positive economic development

With so many Americans dropping out of the work force, the unemployment rate is not an entirely accurate metric of positive economic development. That's one reason the Fed is going to be focusing more on inflation - or the lack thereof. One of the first major inflation data points hit the wire today in the form of the Producer Price Index. The PPI grew in December for the first time in three months with a 0.4% gain. More importantly, the annual rate of increase finished at 1.2% - the lowest yearly climb in five years. The very low figure once again shows that inflation is not a pressing concern for the US. In fact, in this case inflation in running well below the 2% - 2.5% target set by the Fed. Essentially, the economy is still seeking that elusive healthy level of inflation.