Latest / Markets with Megan: A Quick Financial Markets Update / Inflation Drops, Doubts Rise | S2 E109 | 12-18-25

Transcript

Inflation Drops, Doubts Rise | S2 E109 | 12-18-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan Horneman: We're starting to get some of that inflation data that we've been looking for.
• 0:03
  Megan Horneman: It is Thursday, December the 18th, and this is Markets with Megan.
• 0:07
  Megan Horneman: If you like this podcast, please subscribe, hit the alarm bell, share with friends, family, or even colleagues, anyone who's interested in the economic data, what it means for the market, and what it means for the economy going forward.
• 0:21
  Megan Horneman: So today we got a very interesting report for CPI in November, and that's the consumer price index, which is an inflation measure.
• 0:31
  Megan Horneman: If you look on a year-over-year basis, it rose 2.7%.
• 0:35
  Megan Horneman: The core level rose 2.6%, but there was a lot of noise and disruption from the government data.
• 0:43
  Megan Horneman: So there was no month-over-month reading.
• 0:45
  Megan Horneman: We only got year over year for November.
• 0:48
  Megan Horneman: And when we look at what we have, you see food growing about 3% on a year-over-year basis.
• 0:54
  Megan Horneman: Energy services.
• 0:56
  Megan Horneman: So this is everything that takes like heating in your home, 7% on a year-over-year basis.
• 1:02
  Megan Horneman: When you look at services, which we call sticky, excluding energy, that rose 3%.
• 1:08
  Megan Horneman: So again, above that Fed target, the owner's equivalent rent, which makes up a big part of CPI, that rose three per 3.4% on a year-over-year basis.
• 1:20
  Megan Horneman: Medical services as well, a big part that just strains consumer balance sheets, that rose 3.3%.
• 1:28
  Megan Horneman: So these all are still better than expected.
• 1:32
  Megan Horneman: The market's celebrating this.
• 1:33
  Megan Horneman: They're thinking the Fed will come in and cut in January, but let's just be careful because there was a lot of noise around what kind of government information we didn't get.
• 1:43
  Megan Horneman: And we will wait until we get the full December numbers, which we'll get in the middle of January.
• 1:49
  Megan Horneman: That's all we have.
• 1:49
  Megan Horneman: If you want, if you want a history of our podcast, go to marketswithmegan.fm.
• 1:53
  Megan Horneman: Thank you.