Latest / Markets with Megan: A Quick Financial Markets Update / Inflation Stubbornly High and Fed's Rate Decision Looms | Episode 189 | 11-13-24

Transcript

Inflation Stubbornly High and Fed's Rate Decision Looms | Episode 189 | 11-13-24 · Markets with Megan: A Quick Financial Markets Update

• 0:01
  Megan Horneman: It's another month and it's the same old culprits that keep the CPI level high.
• 0:05
  Megan Horneman: It is Wednesday, ovember the 13th, and we received this morning the reading for the October Consumer Price Index.
• 0:12
  Megan Horneman: The reading came in as expected across the board.
• 0:15
  Megan Horneman: So at the headline level it rose on a year-over-year basis 2.6%, and then on a year-over-year basis at the core level it's still elevated at 3.3%.
• 0:27
  Megan Horneman: Now when I say it's the same old culprits, that's because when you look at the details of what kept this year over year core level high was the service sector.
• 0:36
  Megan Horneman: So we saw energy prices come down again energy commodities.
• 0:41
  Megan Horneman: But when you look at the services, you're seeing services X energy rising 4.8% on a year over year basis, slightly higher than last month's 4.7%.
• 0:52
  Megan Horneman: When you go to housing, that's rising 4.2% year over year.
• 0:57
  Megan Horneman: Again.
• 0:57
  Megan Horneman: We've seen a big jump in for the month as well, both in housing and the shelter up four tenths after two tenths last month.
• 1:05
  Megan Horneman: When you look at owner's equivalent rent, which has a big contribution to the CPI report, that jumped up again to 0.4% for the month.
• 1:14
  Megan Horneman: So year over year that is rising 5.2%.
• 1:19
  Megan Horneman: The other big jump we saw was in energy utilities in the housing sector they jumped 0.8% for the month.
• 1:26
  Megan Horneman: So on a year over year basis they're rising 3.6%.
• 1:30
  Megan Horneman: So inflation has kind of stalled here.
• 1:33
  Megan Horneman: It's what we've seen in some of the inflation indicators.
• 1:35
  Megan Horneman: The Fed's watching this.
• 1:37
  Megan Horneman: We still think the Fed will go another 25 basis points in December.
• 1:40
  Megan Horneman: But though we still get a couple more economic indicator pieces of data before that Fed meets in December, but we still get a couple more economic indicator pieces of data before that Fed meets in December, including the labor market, tomorrow's producer price index and then as well the PCE deflator that we'll be looking at in the coming weeks as well.
• 1:56
  Megan Horneman: That's all we have today.
• 1:58
  Megan Horneman: If you like this podcast, please subscribe, hit that alarm bell, share with friends, family or colleagues, and if you'd like a history of our podcast, you can go to marketswithmegan fm.
• 2:09
  Megan Horneman: Thank you,