Last Updated: 16.11.2023 6:39
With the October Consumer Price Index (CPI) Report Set to Be Released Tuesday at 8:30 AM EST, Here’s What Investor Can Expect
On Tuesday morning the October Consumer Price Index (CPI) report will be released at 8:30 am EST, giving the market and the Federal Reserve a look at the current state of U.S. inflation ahead of the Fed’s next decision on interest rates.
According to Bloomberg, analysts expect the October CPI report to show headline inflation of 3.3%, down from 3.7% in September. On a month-over-month basis, it’s expected that consumer prices will show a slight rise of 0.1%, down from the 0.4% increase reported in September.
The recent decline in gas prices will likely have contributed to October’s slightly lower headline inflation. According to BofA, energy prices should drop another 1.8% month over month.
Core inflation, which doesn’t include food and gas prices, is slated to come in at 4.1%. September’s core inflation was also 4.1%
Source: Schwab Network YouTube
While the reduction in headline inflation should bring about some optimism, Wells Fargo warned in its recent note:
Despite headline inflation still being well above the Fed’s magic number of 2%, investors are betting on another Fed pause in December, likely influenced by comments made by Fed Chair Powell at the last meeting.
Per CME Group data, as of this afternoon, the market is projecting an 86% chance that the Fed won’t raise interest rates in December.
Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks or ETFs mentioned in this article.