October consumer prices: Inflation trajectory better but still not good | Cumberland Comment
Excerpt from the Sarasota Herald Tribune below.
The October Consumer Price Index (CPI) rose by 0.4% while the core rate (removing the volatile food and energy components) increased by 0.3%. As a result of these moves, the 12-month trend rates moved lower to increases of 7.7% for the overall CPI and 6.3% for the core. The monthly increases – and the resulting trend rates – were less than financial markets expected.
In response to the numbers, financial markets rallied strongly with expectations of future tightening by the Federal Reserve lowered: The S&P 500 Index was up by a bit more than 5.5%, and the yield on the 10-year Treasury note was down by an astounding 30 basis points to around 3.82%. The slowing in core consumer prices was led by a 0.4% drop in commodities, the biggest decline since the heart of the COVID downturn in April 2020 (the core CPI fell by the same amount in March of this year), with used car prices dropping by 2.4%.
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Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.
