US inflation data shows Americans are paying more for necessities and spending less on retail. The report shows the Consumer Price Index increased a half a percent as living expenses increased. Retail sales had the biggest drop in almost a year down .3 per cent. This is bad news for equities as more nervous investors are moving to bonds and away from the volatile stock market. Experts say it seems more likely the US Central Bank will spike the interest rate in response to quell inflation.

On Wall Street the Dow has sunk 83 points to 24,556 and the TSX is down 36 points to 15,179. Traders are keeping a close watch to see how strengthened inflation fears affect the markets.

The weight on these stock indexes is also coming from the energy sector as oil is continuing its slide this week, down 0.81 to 58.38 a barrel. The price drop is caused by the high production of crude in the US.

The Loonie is down to 79.19 cents US.

Gold remains untouched by market trends and is up 7.70 to 1,338 an ounce.