Inflation Stubbornly High and Fed's Rate Decision Looms | Episode 189 | 11-13-24

In today’s episode, Verdence CIO Megan Horneman, breaks down the latest Consumer Price Index (CPI) report for October, highlighting the persistent contributors to inflation. Despite a year-over-year headline increase of 2.6%, the core CPI remains high at 3.3%. A key factor? The service sector continues to drive inflation, with services excluding energy up 4.8% from last year. Housing costs, particularly owner’s equivalent rent, are also major contributors, rising 5.2% year-over-year. Additionally, energy utilities in housing jumped by 0.8% for the month, translating to a 3.6% increase over the past year. These trends underscore the “sticky” nature of inflation, with core elements like housing and services keeping pressure on prices even as energy costs decline.

Looking ahead, the Federal Reserve remains focused on inflationary signals, and it’s likely we’ll see another 25-basis point rate hike in December. But with several important economic indicators still to come — including the labor market data, tomorrow’s Producer Price Index (PPI), and the PCE deflator — there’s much to monitor before the Fed makes its final decision. Tune in as we explore the current inflation landscape, what’s driving these numbers, and what it could mean for future economic policy. Don't forget to subscribe, hit the notification bell, and share this episode with friends and family for the latest insights on inflation and market trends!

https://youtu.be/0aWU2TxRtXw

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