From Morningstar: 2024-11-14 05:58:48

The October Consumer Price Index report revealed a slight rise in inflation, with CPI up 2.6% year-over-year and 0.2% from the previous month. Core inflation, excluding food and energy, increased 3.3% over the last 12 months. The Federal Reserve is expected to cut interest rates by another quarter-point in December.

Food prices increased 0.2% in October, while shelter prices rose 0.4%. Housing and used car prices have been major contributors to inflation but are expected to moderate. The Fed’s preferred inflation measure, the PCE Index, is predicted to approach its 2% target soon.

Analysts anticipate a 0.25% interest rate cut by the Fed in December. Strong economic growth and firmer inflation data have led to expectations for the cut. However, if core PCE numbers come in higher in November and the labor market remains strong, the Fed may choose to hold rates steady.



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