November CPI report marks latest test for Fed in fight against inflation
Published On Dec 10, 2024, 3:59 PM
The November Consumer Price Index (CPI) report is expected to show a slight increase in inflation, with headline inflation predicted at 2.7%, up from 2.6% in October. Core inflation, excluding volatile food and energy prices, is projected to maintain a level of 3.3% year-on-year. These inflation trends are crucial as the Federal Reserve considers a potential interest rate cut at its upcoming meeting. Economists are divided on the impact of airfares, with varying forecasts on whether they will rise or fall in the short term. Political factors, particularly the election and proposed economic policies, could also complicate future inflation control efforts by the Fed.
Stock Forecasts
SPY
Positive
The CPI report aligns with expectations of stabilizing inflation, which could support a further interest rate cut by the Fed. If inflation remains controlled and below the Fed's target, it may bode well for market sectors sensitive to interest rates.
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