by Jed Graham
Investor’s Business Daily
Wednesday’s consumer price index report for October is expected to show that core prices rose around 0.3% for a third straight month. That could add to uncertainty about another Federal Reserve rate cut in December and slow the S&P 500 Trump election rally.
Still, the stock market and the Fed have plenty of reason to take the CPI inflation data in stride. Most importantly, Fed Chairman Jerome Powell made a convincing case last week as to why inflation is on a clear track to fall to 2%, and he fully expects some bumps along the way.
[…] CPI Inflation Forecasts
The overall CPI is expected to rise 0.2% from September, as the 12-month headline inflation rate ticks up to 2.6% from 2.4%.
The expected 0.3% rise in core prices, excluding food and energy, would leave the 12-month core CPI inflation rate at 3.3%.