Inflation Hotter Than Expected In December—But Core Inflation Falls To 2.5-Year Low
U.S. inflation moderated less than expected last month.
U.S. inflation moderated less than expected last month, according to government data released Thursday, potentially dousing the bullish case behind the stock market’s historic run in recent months.
Consumer prices ticked up 0.4% from November to December, bringing annualized inflation to 3.4%, coming in hotter than average economist estimates of 0.2% MoM and 3.2% annual inflation, according to FactSet.
The downward trend in inflation was no accident, as a series of rapid interest rate increases by the Fed accompanied the moderation. Higher rates tend to bring down inflation by broadly cooling the economy, typically causing slower wage growth and higher unemployment as elevated corporate borrowing costs lead companies to tighten their belts.
Slower U.S. Inflation Is Set to Fuel Fed Rate-Cut Optimism
The pulse of U.S. inflation likely continued to slow at the start of the year, helping to feed expectations that the Federal Reserve will find interest-rate cuts more palatable in the coming months.
Philippines 2023 GDP Rises 5.6% YoY, Est. +5.5%
The news about the Philippines' 2023 healthy GDP growth despite numerous natural disasters and other challenges in the previous year, could potentially boost the country's stock market by creating a positive economic environment and attracting foreign investors.
Fed to Hold Interest Rates Steady But Start Considering Cuts
The U.S. Federal Reserve yesterday completed its two-day policy meeting and will likely hold interest rates steady for a fourth straight meeting but avoid signaling an imminent interest-rate cut.
