from Bloomberg Television
Two Firm Inflation Prints Just Made the Fed’s 2025 Rate Cut Path a Lot ‘Murkier’
by Josh Schafer
Yahoo! Finance
October inflation readings out this week have shown little progress toward the Fed’s 2% inflation target, putting into question how deeply the Federal Reserve will cut interest rates in 2025.
On Wednesday, the “core” Consumer Price Index (CPI), which strips out the more volatile costs of food and gas, showed prices increased 3.3% for the third consecutive month during October. Then, on Thursday, the “core” Producer Price Index (PPI) revealed prices increased by 3.1% in October, up from 2.8% the month prior and above economist expectations for a 3% increase.
Taken together, the readings are adding to an overall picture of persistent, sticky inflation within the economy.
Is Price Gouging Real? Who’s Doing It? Is it Driving Inflation?
by George Calhoun
Forbes
It has been a hot topic in an election year.
[…] After decades of quiescence, inflation surged in 2021 and 2022. The annualized Consumer Price Index (CPI) increased from about 1.5% to over 9%. The CPI has cooled off since, but prices today are 21% higher overall than before the pandemic.
[…] What caused this painful deviation from stable prices and happy times? Economists have various theories, but one explanation that plays well to the general audience is the idea that “greedy corporations” have engaged in “price gouging” – raising their prices faster than their costs were increasing, or keeping their prices high even as costs come down – squeezing the consumer in a “frenzy of profiteering.”
Is a HELOC or Home Equity Loan Better with Inflation Rising?
by Matt Richardson
CBS News
Inflation is on the rise again. That was the big economic news on Wednesday when the Bureau of Labor Statistics released its latest inflation reading. The October inflation rate moved to 2.6%, up from 2.4% in September, and is now more than half a percentage point above the Federal Reserve’s target 2% goal. While not a step in the right direction, it’s too soon to tell if the rise was an indicator of additional economic pain ahead or a temporary issue to be resolved in the months to come.
That noted, a rise in inflation may give borrowers pause, particularly if they’re considering borrowing from their home equity with a home equity loan or home equity line of credit (HELOC). While they operate in similar ways, these products don’t function identically. As such, it’s worth considering which of the two may be better with inflation rising again. Below, we’ll break down what to know.
Inflation Heated Up in October, Highest Monthly Rate Since April
by John Carney
Breitbart.com
U.S. inflation continued to push prices up in October, with prices rising at the fastest monthly rate since April.
The consumer price index rose 0.2 percent in October, matching the prior month, the Department of Labor said Wednesday. Before rounding, prices were up 0.244 percent, the first time since April the unrounded figure has risen above two percent.
This was the third consecutive month of prices rising 0.2 percent on a month-to-month basis. On a year-over-year basis, inflation picked up from the 2.4 percent rate recorded in September to 2.6 percent.
Core prices, which exclude food and energy, rose 0.3 percent and were up 3.3 percent from a year earlier.
Fed Up with High Prices? Here’s Where Things Stand with Inflation
by Laurel Wamsley
NPR
By the numbers, inflation in America continues in the same direction: Easing largely — but still sticky.
Data out on Wednesday showed consumer prices last month increased 2.6% from a year ago. That was slightly higher than the 2.4% annual increase seen in September — but overall, inflation has still eased substantially from its peak in 2022.
That should be good news, but it has been of little comfort to many Americans.
That’s because prices still remain substantially higher than they did before the pandemic — and that has left many voters frustrated, as the election this year made clear.
Here’s what to know about the state of inflation in America.
Inflation Rose Right Before the Election, Posing Challenges for Trump
Prices grew by just 0.2 percent between September and October, which was the same pace as a month earlier.
by Andrew Ackerman
Washington Post
Inflation rose modestly in the lead-up to last week’s presidential election, a sign that underlying economic forces keeping prices elevated will continue as Donald Trump returns to the White House.
The consumer price index increased by 2.6 percent in October from a year earlier, according to the Labor Department, in line with economists’ expectations and hotter than a 2.4 percent rise in September. Prices were also up by 0.2 percent between September and October, which was the same pace as in each of the three previous months.
Inflation dominated the list of top concerns of Americans who voted out incumbents in federal elections, even as inflation has eased this year. Overall prices remain much higher than in 2019, just before the pandemic.
Wall Street Edges Higher After Inflation Data Keeps Fed Rate-Cut Hopes Intact
by Purvi Agarwal and Lisa Pauline Mattackal
USA Today
Nov 13 (Reuters) – Wall Street’s main indexes inched higher on Wednesday after in-line consumer price inflation data kept the U.S. Federal Reserve on track to deliver another interest rate cut in December.
The consumer price index rose 0.2% in October for the fourth straight month, the Labor Department’s Bureau of Labor Statistics said, and advanced 2.6% on an annual basis. Excluding the volatile food and energy components, the CPI increased 0.3% in October.
The numbers were in line with economists’ forecasts. U.S. stock index futures had reversed early losses following the data.
“The market is already a little bit on edge about the inflationary possibilities for 2025 under a new administration,” said Ross Mayfield, investment strategist, Baird.
Inflation Ticked Up as Voters Cast Ballots, but Price Growth for Many Basics Holds Steady
Consumer prices inched higher in October as a majority of voters backed a presidential candidate vowing sweeping economic policy changes.
by Rob Wile
NBC News
Price growth ticked higher in October as voters began casting ballots in a presidential election in which economic concerns played a big role.
The consumer price index climbed to 2.6% last month since the same time last year, the Bureau of Labor Statistics reported Wednesday. That’s a bit hotter than the 2.4% annual rate in September, which was the slowest pace since President Joe Biden’s first full month in office.
“Core” inflation, a measure that excludes volatile food and energy prices, held at 3.3% over the 12 months ending in October, the same level notched in the previous month.
On Inflation Reduction Act Reform, Anything Short of Full Repeal is Failure
by Travis Fisher, Adam N. Michel, and Joshua Loucks
The CATO Institute
Full Republican control of Washington creates an opportunity to repeal many of the previous administration’s most costly laws and regulations. The misleadingly named Inflation Reduction Act (IRA) should be at the top of the list, not only because it is a disastrous environmental policy but also because it will be a necessary offset for a fiscally responsible extension of the expiring 2017 tax cuts.
The energy and climate provisions of the IRA are already burning through taxpayer dollars at rates much higher than initially projected. These subsidies will likely cost over $1 trillion by 2032 and as much as $4 trillion by 2050, and some of the most lucrative tax credits have no expiration date.
U.S. CPI Data Preview: Inflation Expected to Rebound for First Time in Seven Months
The US Consumer Price Index is set to rise 2.6% YoY in October, faster than September’s 2.4% increase.
by FXStreet Team
FX Street
The Consumer Price Index (CPI) inflation data from the United States (US) for October, published by the Bureau of Labor Statistics (BLS), is highly anticipated and slated for release on Wednesday at 13:30 GMT.
The US Dollar (USD) is set to rock on intense volatility likely to be spurred by the US inflation report, which could significantly impact the market’s pricing of the Federal Reserve (Fed) interest rate outlook for the coming months.
What to expect in the next CPI data report?
As measured by the CPI, inflation in the US is expected to increase at an annual rate of 2.6% in October, a tad higher than the 2.4% growth reported in September. The core annual CPI inflation, excluding volatile food and energy prices, will likely remain at 3.3% in the same period.