DECEMBER 12, 2024 – The November report came in at 2.7%, slightly below my estimate at 2.8%-3.0%. The 3-month annualized inflation rate is 0.9%. The 6-month annualized inflation rate is 0.9%. These figures are well below the annualized rate (2.7%) and thus indicate the annual CPI should decline slightly. However, the data is predicting a reading of 2.9% next month. I think it will be 2.6%-2.7%. In the 1st Quarter of 2025 we may see a significant decline.
As a side note, the monthly CPI has been at 0.20% or lower for 7 straight months. There are many areas of deflation out there.
The market has the Fed Funds Rate priced at 4.4%. It was recently cut to 4.75%. The Fed doesn’t have much catching up to do. Til next month.
Happy Holidays to all.
Shalom,
The Mann