Read the highlights of this week’s commentary from Helios:
- Inflation was steady in November, with core consumer price index (CPI), which excludes food and energy, rising 0.3% for the fourth consecutive month and 3.3% from one year ago. Shelter costs cooled but still contributed nearly 40% of the rise, while grocery prices surged 0.5%. Despite easing from pandemic highs, progress has slowed, leading to discussions about more gradual Federal Reserve interest rate cuts.
- The producer price index (PPI) for final demand rose 0.4% in November, the largest increase since June, driven by a sharp rise in egg prices. Egg prices spiked by 55%, contributing to an overall 3.1% increase in food prices, the highest in two years. Despite these increases, many service prices remained stable or declined, helping to moderate broader inflation concerns.
- Household financial optimism hit its highest level since February 2020, according to a New York Federal Reserve survey, with more people expecting an improved financial situation. Inflation expectations increased slightly, while the outlook for government debt growth improved. Despite overall economic growth, consumers remain cautious about rising prices.
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