What The November CPI Inflation Drop Really Implies
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Manika PremsinghInvesting GroupFollow5ShareSavePlay(8min)CommentsSummaryWhile CPI inflation dropped in November, the decline in core inflation to a four-year low really stole the show, with implications beyond policy rate cuts.After a weak labor market report recently, the CPI inflation release indicates that the Fed can be closer to a rate cut than is currently factored in by the markets.It also suggests that the real economy could be softening faster than the Fed currently anticipates, encouraging considering investing in safe haven assets. Sila Damrongsaringkan/iStock via Getty Images As the government shutdown stalled inflation releases recently, last month I considered proxy inflation indicators instead. Their support for a rate cut is reflected in reduced policy rates by the Fed earlier this month. Since then, further This article was written byManika Premsingh4.34K FollowersFollowManika is a macroeconomist with over 20 years of experience in industries including investment management, stock broking, investment banking. She also runs the profile Long Term Tips [LTT], which focuses on the generational opportunity in the green economy. Her investing group, Green Growth Giants, takes the theme a step further from LTT with a deeper dive into opportunities presented by the segment.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.