The CPI inflation in the USA was 2.6 percent year-on-year in October. The inflation rate increased for the first time since March. In the previous month, it was 2.4 percent year-on-year. The reading proved to be in line with market consensus.
The FED continues to reduce interest rates. This month it made the second move, this time by 25 basis points. The market is discounting a similar move in December. However, the inflation index is slowly moving away from the 2 percent target, and in addition, D. Trump’s victory may mean a return of economic policy based on a deficit-induced inflationary increase.
Due to the above, market participants are adjusting their expectations for the pace of interest rate cuts in 2025 – reducing their anticipated number.
Author: Bartosz Wałecki, Analyst, Trader Michael / Ström Dom Maklerski
Source: https://ceo.com.pl/inflacja-w-usa-powoli-oddala-sie-od-celu-2-proc-74980
