Another downside surprise for the second month in a row as US inflation moves lower faster than widely expected by the market. Analysts forecasted 7.3% YoY inflation; however, the data showed a 7.1% year-on-year increase. Core CPI month-over-month also came lower at 0.2% vs. the 0.3% estimated for November, seeing prices on goods return to near pandemic price levels.
It will be interesting to see if the Federal Reserve will soften its touch on interest rates as the measures, they have implemented over 2022 are starting to take effect. But the Fed might want to see more proof of inflation moving lower than anticipated as the Fed interest rate decision looms.
The benchmark Index, the S&P 500, and other US Indices moved higher after the announcement, with the significant US Treasury yields lower along with the Greenback. This may change with further news coming in the week concerning the FOMC meeting.
Trive South Africa (Pty) Ltd, Registration number 2005/011130/07, and an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 2002 (FSP No. 27231). Any analysis/data/opinion contained herein are for informational purposes only and should not be considered advice or a recommendation to invest in any security. The content herein was created using proprietary strategies based on parameters that may include price, time, economic events, liquidity, risk, and macro and cyclical analysis. Securities involve a degree of risk and are volatile instruments. Market and economic conditions are subject to sudden change, which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. When trading or investing in securities or alternative products, the value of the product can increase or decrease meaning your investment can increase or decrease in value. Past performance is not an indication of future performance. Trive South Africa (Pty) Ltd, and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered from using or relying on the information contained herein. Please consider the risks involved before you trade or invest.
