Published On Nov 13, 2024, 5:03 AM
Inflation in the U.S. ticked up slightly to 2.6% in October from a year earlier, compared to 2.4% in September, according to the Consumer Price Index. Core inflation remained steady at 3.3%. While these figures indicate ongoing moderation in inflation, the Federal Reserve is cautious as rate cuts aren't guaranteed, pending further economic data.
Positive
With the Federal Reserve likely to cut interest rates in December, this could potentially boost sectors sensitive to interest rates. Financial sectors may benefit from a stable inflation environment, while consumer discretionary goods could see mixed results due to inflation's persistence.
Negative
The clothing sector may face a challenge as the drop in apparel prices is viewed as a one-off event, which could pressure margins unless the trend reverses.
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