The Consumer Price Index Likely Changed Little In November, Forecasters Say

by Diccon Hyatt
Investopedia

Inflation has barely budged in recent months, and that trend is likely to continue in November.

An inflation report from the Bureau of Labor Statistics due Wednesday is likely to show the Consumer Price Index, a measure of the cost of living, rose 2.7% in the 12 months ending in November, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.

That would be up from a 2.6% annual increase in October and the highest inflation rate since July, marking a setback in the Federal Reserve’s battle to get inflation down to a 2% annual rate and keep it there.

Bureau of Labor Statistics via Federal Reserve Economic Data. “Consumer Price Index for All Urban Consumers: All Items in U.S. City Average.”

Progress against inflation has stalled in recent months, contrasting earlier in the year when price increases were notably decelerating.

Continue Reading at Investopedia.com…

from Yahoo Finance

by Maria Eloisa Capurro
Yahoo! Finance

(Bloomberg) — Brazil economists lifted their estimates for inflation and borrowing costs through 2027 as investors bet the central bank will turn more aggressive on interest rate hikes at its meeting this week.

The benchmark Selic will rise to 12% at Wednesday’s policy decision, up from the prior estimate 11.75%, according to a weekly central bank survey of economists published Monday. Analysts also lifted their forecasts for the key rate at the end of next year to 13.5%, from 12.63% before.

Borrowing cost cuts are only expected to start in 2026, when the Selic is seen at 11% before falling to 10% in 2027.

Central bankers led by Roberto Campos Neto are widely expected to extend their tightening cycle from the current level of 11.25% while also reinforcing their commitment to haul inflation to the 3% target.

Continue Reading at Finance.Yahoo.com…

from NEWS CENTER Maine

by Wolf Richter
Wolf Street

Prices are rising again, amid tight supply, sharply reduced flow through the used-vehicle pipeline, and strong demand.

Prices of used vehicle sold at auctions across the US jumped by 1.3% in November from October, seasonally adjusted, continuing an upward trend that started over the summer, according to the Manheim Used Vehicle Value Index, which is adjusted for changes in mix and mileage (red in the chart).

This jump flipped the year-over-year reading to the first increase (+0.2%) since August 2022, after the historic plunge during which prices gave up nearly 50% of the pandemic spike, with a bottom in mid-2024. Now prices have turned around.

Continue Reading at WolfStreet.com…

from Ric Bender

from LA Times

To the editor: Economics professor Aine Seitz McCarthy says Americans ought to retake Econ 101. Reading her piece, I think she ought to take it herself.

Expanding the money supply causes inflation. What else would one expect from the succession of major spending bills that came from this administration and increased the national debt to more than $36 trillion?

McCarthy proposes government spending increases on social welfare programs. So where does the money come from? Either you tax for it or borrow it. Interest payments on the national debt now total more than $1 trillion yearly.

Continue Reading at LATimes.com…

from Tolga's Market Radar

by Ben Berkowitz
Axios

President-elect Trump reiterated his promises to impose tariffs and increase oil production, even if it impacts consumers.

Why it matters: By sticking to his campaign pledges, Trump would all but assure a fresh spike in inflation, which was a deciding factor in the election.

The big picture: In a sitdown interview with NBC’s “Meet the Press” that aired Sunday, Trump renewed his most important economic plans.

On tariffs, Trump stood by his promise for new levies on major trading partners, which he always insisted those other nations would pay.

Continue Reading at Axios.com…

from Kon How

by Finimize Newsroom
Finimize

What’s going on here?

Gold prices have climbed to $2,631.60 per ounce as investors keep a keen eye on US inflation data and recent geopolitical changes in Syria.

What does this mean?

Investors are eagerly awaiting US inflation data due Wednesday, which could influence the Federal Reserve’s next move on interest rates. The CME Group’s FedWatch Tool suggests an 85.1% chance of a 25-basis-point rate cut this month. Meanwhile, the US labor market demonstrated resilience, adding 227,000 jobs in November after October’s hurricane impact, though unemployment inched up to 4.2%. Meanwhile, the situation in Syria highlights gold’s traditional role as a safe haven. As these factors unfold, gold’s appeal as a protective asset remains strong.

Continue Reading at Finimize.com…

from CNBC-TV18

by Karen Bartko
Global News, Canada

From thinking twice about buying certain products to the much weightier decision over whether to even have kids, the already high cost of living is hitting home for Albertans as the latest Canada Food Price Report predicts groceries will get even more expensive in 2025.

Food prices in Canada are likely to increase by three to five per cent overall next year, according to the 15th annual food price report released by a partnership between researchers at Dalhousie University, the University of Guelph, the University of Saskatchewan and the University of British Columbia.

“We’re just trying to get by, but five per cent is pretty disheartening to hear,” Edmonton resident Sydney Dick said outside a southside Walmart store on Thursday.

Continue Reading at GlobalNews.ca…

from The United Spot

Governor Christopher Waller says he still supports a December interest rate cut barring a surprise in the economic data

by Colby Smith
FT

A top Federal Reserve official has warned the US central bank’s progress on curbing inflation “may be stalling”, even as he threw his support behind a cut in interest rates later this month.

Christopher Waller, a Fed governor who sits on the policy-setting Federal Open Market Committee, on Monday said he backed the central bank lowering rates at its December 17-18 meeting. He said still-elevated borrowing costs were curbing demand across the world’s biggest economy, contributing to easing price pressures.

Still, Waller noted that “if the data we receive between today and the next meeting surprise in a way that suggests our forecasts of slowing inflation and a moderating but still-solid economy are wrong, then I will be supportive of holding the policy rate [unchanged in December]”.

Continue Reading at FT.com…

from CNBC Television

Smith & Wesson reported a decline in second-quarter adjusted net income as demand for firearms was slowed by inflation.

by Bill McColl
Investopedia

Smith & Wesson Brands (SWBI) shares plunged nearly 20% Friday, a day after it warned that inflation was reducing firearm sales and lowered its guidance.

The gunmaker reported second-quarter fiscal 2025 adjusted net income of $4.8 million, or $0.11 per share, down from $6.5 million, or $0.14 per share, a year ago. Revenue rose 3.8% year-over-year to $129.7 million.1

Chief Executive Officer (CEO) Mark Smith said the results “came in below our expectations as overall demand for firearms normalized late in the quarter,” and that the main reason for that “continued to be inflation.” Smith added that “the consumer cautiousness with discretionary spend that we observed in recent quarters was more pronounced during the second quarter than we anticipated.”

Continue Reading at Investopedia.com…

from Wealthion

Rising prices are here to stay. Use these investments to beat the inflation trap.

by Elizabeth O’Brien
Barron’s

For a generation of retirees, inflation was an afterthought. Today, it’s a disquieting threat, lurking like a sea monster that may surface again.

It’s a valid concern. While the Consumer Price Index is down to 2.6%—from a peak of 9% in 2022—inflation may prove tough to keep at bay. Whether President-elect Donald Trump’s policies will reignite price gains remains to be seen. Either way, investors should inflation-proof their portfolios to bolster retirement income.

“It’s not just a bump in the road or a blip,” says Dan Griffith, director of wealth strategy for Huntington Private Bank in North Canton, Ohio. “It’s something you need to plan for.”

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from Palisades Gold Radio