Friday, June 6, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

Consumer inflation expected to have continued cooling in November but still high

by Index Investing News
December 13, 2022
in Stock Market
Reading Time: 4 mins read
A A
0
Home Stock Market
Share on FacebookShare on Twitter


A person walks past the meal aisle inside a grocery store on November 14, 2022 in New York City.

Spencer Platt | Getty Images

Consumer inflation likely cooled in November, but prices continued to rise at a still high rate, particularly for services.

Economists expect the consumer price index rose by 0.3% in November, or at an annual pace of 7.3%, according to Dow Jones. That’s down from 7.7% in October. When excluding food and energy, core CPI was expected to climb by 0.3%, or 6.1% year-over-year, compared with October’s 0.3% gain, or an annual rate of 6.3%, according to Dow Jones.

The inflation report is expected at 8:30 a.m. ET Tuesday, as the Federal Reserve begins its two-day meeting. The central bank is widely expected to raise rates by a half percentage point Wednesday afternoon, and economists mostly expect the Fed to stick with the 50 basis point increase even if the CPI report is hotter. A basis point equals 0.01 of a percentage point.

“I think if the market sees something in line, all is good,” said Mark Cabana, head of U.S. rate strategy at Bank of America Merrill Lynch. “If the theme holds, rates [bond yields] probably still decline a bit. But if we see something that surprises to the upside, I think that would generate a more sizeable market response because it would be questioning the theme the market has really latched on to — which is that inflation has peaked.”

Economists expect the Fed will keep raising interest rates until the fed funds target rate edges to 5% or slightly more. The fed funds target range is currently 3.75% to 4%. A hotter or lower CPI report is not likely to sway the Fed for this meeting, but economists say it could be a signal about the longer-term trajectory for interest rates.

Stocks were higher Monday, and Treasury yields were also higher ahead of Tuesday’s CPI report. Bond yields move opposite price. The 2-year note yield, which most reflects Fed policy, jumped to 4.39% Monday, up 0.06 of a percentage point.

Fed Chairman Jerome Powell holds his regular post meeting press conference Wednesday at 2:30 p.m. ET, a half hour after the Fed releases its policy statement and its latest economic and interest rate forecasts.

“I think it will be another benign print. I’m pretty neutral on this report,” said Aneta Markowska, chief financial economist at Jefferies. “It feels like that risks are asymmetrically skewed toward the high side. I think if you get a higher print, I think the [stock] sell-off is disproportionately stronger.”

Markets will be largely focused on inflation coming from services, excluding real estate, since Powell highlighted that recently.

“Powell pretty much told us last week that we know core goods will continue to slow. We know housing will eventually slow as the decline in market rents eventually comes through. The one piece we don’t have confidence in slowing is core services ex-housing,” said Markowska.

The Jefferies economist said that component of the inflation report is key, since it includes the areas that are driven by wage inflation, like transportation, medical services, education and recreation. She said core goods inflation should slow, and some price inflation in services will show signs of abating. Hotel rates are one area where inflation could slow, and economists expect pandemic-related price jumps should continue to unwind, including in used automobiles.

“We know it’s going to be better inflation data. It’s going to be cooler. That’s great, but it’s going to be about getting down into a lot of details to see where there is inflation and where there isn’t,” said Diane Swonk, chief economist at KPMG. Swonk said the data is unlikely to be reflected in the Fed’s quarterly forecasts, expected Wednesday afternoon. But a hotter or weaker number could still influence other communications from the Fed.

“They will have already pulled it apart by the time they meet. They will be discussing it,” said Swonk. “It could shade the tenor, the nuance with which Powell delivers his press conference.”

Swonk said the data could continue to be noisy and inconclusive about where inflation is going.

“Unfortunately, it will be less definitive than we would like because we know there are some distortions in it,” she said. “The more important issue is whether there is something happening in that non-shelter service component that is more systemic than what the Fed is looking at.”

Swonk said it will important to see whether there is a significant downward movement or inflation is plateauing, which would also be positive compared to rising prices.

“We’re going to look at the things that are most dependent on wages,” she said. “It means looking at everything from restaurant costs, hospitality to hotel rooms, hair cuts and personal care.”

Areas where there was the most inflation, like energy, should continue to cool off. Energy was up 1.8% in October.



Source link

Tags: ConsumerContinuedcoolingExpectedHighInflationNovember
Previous Post

China Fixed Income 2022 highlights: Key trends and forecasts in China’s offshore bond market | china, fixed income, stan ho, lianhe global, rating agency, ratings, property, evergrande, slbc, lgfv

Next Post

TikTok star and ex-Hooters girl Ali Spice dies in horror car crash aged 21

Related Posts

The Gabelli Value 25 Fund Inc. Q1 2025 Commentary (:GVCAX)

The Gabelli Value 25 Fund Inc. Q1 2025 Commentary (:GVCAX)

by Gabelli Funds
June 6, 2025
0

This text was written byComply withGAMCO Buyers, Inc. is a well known diversified asset supervisor and monetary providers firm. The...

The Gabelli Small Cap Growth Fund Q1 2025 Commentary (undefined:GABSX)

The Gabelli Small Cap Growth Fund Q1 2025 Commentary (undefined:GABSX)

by Gabelli Funds
June 5, 2025
0

This text was written byComply withGAMCO Traders, Inc. is a well known diversified asset supervisor and monetary companies firm. The...

Hewlett Packard Enterprise: AI Momentum, Hybrid Cloud, Valuation Still Low (NYSE:HPE)

Hewlett Packard Enterprise: AI Momentum, Hybrid Cloud, Valuation Still Low (NYSE:HPE)

by Value Sights
June 5, 2025
0

This text was written byComply withI’m a basic, valuation-driven investor with a powerful deal with figuring out companies which have...

Fiserv, Inc. (FI) Presents at William Blair 45th Annual Growth Stock Conference (Transcript)

Fiserv, Inc. (FI) Presents at William Blair 45th Annual Growth Stock Conference (Transcript)

by SA Transcripts
June 4, 2025
0

Name Begin: 14:20 January 1, 0000 2:50 PM ET Fiserv, Inc. (NYSE:FI)William Blair forty fifth Annual Progress Inventory ConventionJune 04,...

Alphabet (GOOG) Stock: A Hold Your Nose Buy

Alphabet (GOOG) Stock: A Hold Your Nose Buy

by MangoTree Analysis
June 4, 2025
0

This text was written byObserveL/S TMT - Largely InternetCollege SophomoreAnalyst’s Disclosure:I/we now have a helpful lengthy place within the shares...

Applied Digital Just Got A Seat With The Big Boys: Initiating With A Buy (NASDAQ:APLD)

Applied Digital Just Got A Seat With The Big Boys: Initiating With A Buy (NASDAQ:APLD)

by The Techie
June 4, 2025
0

This text was written byComply withI’m a retired Wall Road PM specializing in TMT; since kickstarting my profession, I’ve spent...

Next Post
TikTok star and ex-Hooters girl Ali Spice dies in horror car crash aged 21

TikTok star and ex-Hooters girl Ali Spice dies in horror car crash aged 21

November CPI Data And October IIP Data Released: Know Details

November CPI Data And October IIP Data Released: Know Details

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

PSU Stocks In Limelight — Should You Buy, Sell, Or Hold?

PSU Stocks In Limelight — Should You Buy, Sell, Or Hold?

June 6, 2025
Huawei Band 10 With Up to 14 Days of Battery Life Launched in India: Price, Features

Huawei Band 10 With Up to 14 Days of Battery Life Launched in India: Price, Features

June 6, 2025
Why Trump Is Trying to Send Deportees to South Sudan

Why Trump Is Trying to Send Deportees to South Sudan

June 6, 2025
Lagrange Crypto $LA Surges 500%, Solaxy Next 5x Token?

Lagrange Crypto $LA Surges 500%, Solaxy Next 5x Token?

June 6, 2025
In the aftermath of Bengaluru stampede, new Commissioner appointed; RCB’s marketing head arrested

In the aftermath of Bengaluru stampede, new Commissioner appointed; RCB’s marketing head arrested

June 6, 2025
Listed UK Miner to Convert Gold Income to Bitcoin, Stock Jumps

Listed UK Miner to Convert Gold Income to Bitcoin, Stock Jumps

June 6, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

PSU Stocks In Limelight — Should You Buy, Sell, Or Hold?

Huawei Band 10 With Up to 14 Days of Battery Life Launched in India: Price, Features

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In