Producer prices cool in latest sign of inflation slowdown
Published On Sep 12, 2024, 8:47 AM
Wholesale inflation in the U.S. has slowed, as indicated by the producer price index which rose by 0.2% from July to August, marking a decrease in overall price pressures. The annual increase was only 1.7%, the smallest since February. The core wholesale prices also showed a modest rise, but overall inflation is moving closer to the Federal Reserve's 2% target. As a result, analysts expect the Fed to cut interest rates in the near future, aiming to stimulate growth as inflation continue to cool.
Stock Forecasts
XLF
Positive
With inflation pressures easing and a potential interest rate cut by the Federal Reserve on the horizon, sectors that benefit from lower borrowing costs, such as real estate and consumer discretionary, are likely to see positive momentum. Additionally, companies in the financial services and banking sectors may benefit from upcoming rate cuts as lending costs decrease.
XLP
Negative
Investors in consumer staples could be cautious, as the inflation trend indicates that higher prices for goods, such as food and energy, are only marginally stabilizing. This sector may not see immediate gains if consumer spending trends don't pick up alongside lower inflation rates.
Related News
Here’s the deflation breakdown for September 2024 — in one chart
Oct 11, 2024, 1:58 PM
Prices in segments of the U.S. economy, like some imported goods, consumer electronics and gasoline, have deflated since September 2023.
JPMorgan touts 'soft landing' possibility after better-than-feared earnings
Oct 11, 2024, 11:03 AM
Profits at JPMorgan and Wells Fargo both fell from the year-ago period, but those declines were less than what analysts expected.
Stock market today: Stocks rise amid big bank earnings, inflation data
Oct 11, 2024, 10:21 AM
JPMorgan and Wells Fargo get earnings season going in earnest while a wholesale inflation print is in focus after the CPI surprise.