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📰 CPI DATA EXPECTED TO SHOW STALLING PROGRESS AGAINST INFLATION The U.S. consumer price index for November will likely show that progress on the inflation fight is stalling, Wells Fargo’s Sarah House and Aubrey Woessner write. They forecast the 12-month gauge at 2.7%, up from 2.6%. They see the core reading “stuck in the narrow range of 3.2%-3.3% for a sixth straight month.” While some sources of inflation “such as an overheated labor market, continue to dissipate, new headwinds to disinflation have emerged,” including the potential for tariffs and tax cuts, they say. The CPI report is due Wednesday, one week ahead of a Fed decision, for which a 25-basis-point interest rate cut is being priced in futures markets.

December 5, 2024
Frank

CPI DATA EXPECTED TO SHOW STALLING PROGRESS AGAINST INFLATION

The U.S. consumer price index for November will likely show that progress on the inflation fight is stalling, Wells Fargo’s Sarah House and Aubrey Woessner write. They forecast the 12-month gauge at 2.7%, up from 2.6%. They see the core reading “stuck in the narrow range of 3.2%-3.3% for a sixth straight month.” While some sources of inflation “such as an overheated labor market, continue to dissipate, new headwinds to disinflation have emerged,” including the potential for tariffs and tax cuts, they say. The CPI report is due Wednesday, one week ahead of a Fed decision, for which a 25-basis-point interest rate cut is being priced in futures markets.