Inflation progress stalls in US in October

Published On Nov 13, 2024, 8:48 AM

Inflation in the US rose to 2.6% year-over-year in October, up from 2.4% in September, primarily due to increases in housing and food costs. This slowing progress towards stabilizing prices raises concerns about the Federal Reserve's monetary policy, potentially affecting interest rates in the near future. Analysts note that while inflation is not accelerating dramatically, speed bumps remain in the 'last mile' to achieving the target of around 2%. The data suggests that markets are unlikely to see significant shifts in the short term based on this information.

Read full article

Stock Forecasts

VPUView VPU chart on TradingView

Positive

Given the stagnation in inflation progress and the Federal Reserve's potential for maintaining interest rates rather than aggressive cuts, sectors sensitive to interest rates, such as housing and consumer discretionary stocks, may experience pressure. A focus on essential goods and services may favor companies within those sectors. Fuel price drop contrasts with rising costs in key categories, indicating potential challenges for consumer spending. An investment in utilities or consumer staples might provide resilience under these economic conditions.

Related News

UK Budget: What to Know Before Labour’s Announcement

Oct 28, 2024, 12:01 AM

The new Labour Party government said it had inherited a challenging financial position and warned of tax increases and spending cuts when it reveals its budget this week.

VPU
EWU

Utilities outperform the broader markets amid enthusiasm over AI electricity demand

Oct 18, 2024, 1:57 PM

Utilities is on fire this year. Here's what's driving the demand.

VPU

Treasury hints Labour will spend billions on infrastructure

Oct 17, 2024, 8:01 PM

Billions of pounds of government borrowing could be spent on new infrastructure projects because of new self-imposed Treasury rules.

VPU