Wall Street is bracing for Friday’s consumer price index report, a release that could shape expectations for the Federal Reserve’s next interest-rate decision. With policymakers closely monitoring inflation trends,

“The index for shelter rose 0.2% in January and was the largest factor in the all items monthly increase,” the BLS said in its release. “The food index increased 0.2% as did the food at home index, while the food away from home index rose 0.1%. These increases were partially offset by the index for energy, which fell 1.5% in January.”

Traders in interest rate futures, responding to cooler-than-forecast inflation, expect a faster pace of monetary policy easing than they did on Thursday.

Price increases were likely relatively tame in January, with one key measure of inflation expected to drop to its lowest in nearly five years.

A strong January jobs report eased worries about a shaky labor market. Now Federal Reserve officials hope inflation is held in check in the first month of the year Economists polled by The Wall Street Journal predict a 0.

MEXICO CITY, Feb 11 (Reuters) - Bank of Mexico Deputy Jonathan Heath believes Mexican inflation is unlikely to fall to the bank's 3% target in the second quarter of next year, as the bank officially forecast last week,

The slightly lower number for January reflects smaller price increases for shelter and food, as well as a decrease in energy costs.

Ed Yardeni, President of Yardeni Research says inflation and jobs data signal a positive outlook for the economy.