The much-awaited November price inflation report is due at 8:30 a.m. EST on Tuesday, and it is widely expected to show a letup in pricing pressure.

What Happened: Economists, on average, expect the headline producer price index to show a 0.3% month-over-month increase in November, a slowdown from the 0.4% growth in the previous month. The annual rate of the CPI is also expected to slip back from 7.7% to 7.3%.

A softer inflation report is considered a precursor for a rally ahead of Wednesday’s Fed decision.

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An analyst at SoFi, however, thinks it would take a very long time for inflation to get near the Fed’s target of around 2%.

Inflation swaps currently imply that the year-over-year rate of the CPI will reach 2.5% only by June 2023, said Liz Young, chief investment strategist at online personal finance firm SoFi.

“If I could add music to tweets I’d use ‘So Far Away’ by Carole King,” she added.

Inflation swaps serve as useful guides for analyzing inflation expectations and in turn are predictors of inflation.

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