Wall Street opens lower.

From Marketplace, I'm Nancy Marshall Genser in for David Brancaccio.

Investors are looking ahead to Thursday when we'll get December consumer price index numbers.

Karen Petru is co-founder and managing partner at Federal Financial Analytics.

She joins me now on this.

Good morning, Karen.

Morning Nancy.

So what do you think the December

C. P. I think we're going to see more of the same gradual slowing.

And it's important to remember that means we still have inflation.

Inflation in a two and a half to more likely 3% range, which is above the Fed's target of 2 and

still painful to most American households, but it's slowing and that's certainly all to the good.

Slowing but not falling. Where will inflation still be sticky, Karen, in the services sector like we've seen in the past?

Services, housing, I think remains a major area. Health care, cost at other services, child care. Food prices are volatile and

they're certainly not going down for all but a few key commodities and energy, particularly gasoline, remains uncertain due to the

geopolitical risk in the Red Sea. Right there are geopolitical risks. Of course the

Fed is keeping an eye on inflation. It has been raising interest

rates to cool the economy and cool off inflation. So what types of inflation

numbers would the Fed need to see to cut interest rates?

Well, I think first thing I would say, it's important to note

high interest rates are not cooling the economy.

Look at the consumer spending during the holiday season

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