This just in: CEO Chris Shuba on Schwab Network

Let’s talk about inflation!

  • Annual Inflation Hits Fed Target in New England, Still Above 4% in the South

  • Inflation slowed across the US in October, with annual inflation in the New England region now at the Federal Reserve’s 2% target.
  • The states in the East North Central region, including Illinois, Indiana, and Ohio, have also seen significant cooling, with consumer prices rising 2.5% from a year earlier.
  • Inflation remains above 4% in parts of the South, including Alabama, Kentucky, Mississippi, and Tennessee.
  • The South Atlantic region, including Maryland, Virginia, and Washington D.C., is also experiencing high inflation at 3.9%.
  • Overall, inflation remains higher in poorer states than in wealthier states.
  • According to the Philadelphia Fed’s Survey of Professional Forecasters, the median forecast for CPI inflation is 2.6% over the next five years and 2.4% over the next decade.
  • Whereas the bond market suggests a slightly lower expectation of 2.3% annual inflation for the next five years and 2.36% over the next decade.
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Source: Helios Quantitative Research, Bloomberg, Bureau of Labor Statistics, Federal Reserve Bank of Philadelphia