US inflation rate drops to 7.7%, lowest since January
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US inflation rate drops to 7.7%, lowest since January – business live
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LIVE – Updated at 13:59
Dollar slides and stocks rise as US consumer prices rise by less than expected last month.
13:59
Wall Street futures have surged, with the Dow Jones industrial average on track to open 800 points higher, a gain of over 2%.
European investors have joined the party too, with the FTSE 100 index of blue-chip shares up 80 points or 1.1% in London.
good (eco) news is good news (for stocks futures):
October inflation data comes in tamer than expected = core/MoM/YoY/wages. Weekly jobless claims also tick higher, suggesting Fed tightening is having its intended effect. pic.twitter.com/wf3LsISo59
— Scarlet Fu (@scarletfu) November 10, 2022
13:58
Today’s US inflation figures confirm suggestions that the peak may be disappearing down the rearview mirror, says Neil Shah , executive director at Edison Group.
But even so, the Fed may eventually raise interest rates to 5% to squeeze out inflation (the current rate is 3.75-4% — the highest since early 2008).
At the same time, stubborn core inflation persists and continuing reports of a tight labour market will fuel wage inflation, pointing to a longer-term and more entrenched inflationary challenge for both fiscal and monetary policymakers.
As Fed chair Powell alluded to at November’s meeting, the FOMC’s December decision may well be a 0.5% hike, yet the higher than expected terminal rate of over 5% will still be a tough target for global markets to digest.
13:55
A cooler reading than expected for US #inflation CPI up 7.7% over the last 12 months vs the 8% expected
Core inflation also showed a slower rise at 6.3%
But those prices rises are really hitting the basics - food, gasoline and shelter
— Danni Hewson (@dannihewson) November 10, 2022
13:54
Traders have been looking for signs of peak inflation for months – could we finally be there?
Fresh signs of peak inflation: US consumer prices eased on a year-over-year basis in Oct. Headline CPI slipped to 7.8% & core CPI, which the Fed watches closely, eased to 6.3%. The update may give the Fed room to slow the pace of rate hikes at the upcoming Dec. 14 FOMC meeting: pic.twitter.com/DhZ4X8RxGb
— James Picerno (@jpicerno) November 10, 2022
13:53
US inflation is still well over the Fed’s 2% target, with prices rising much faster than average wages over the last year.
But it is – finally – trending in the right direction.
It's encouraging to see inflation -- both the "all items" index and the "core" index -- finally trending down.
US inflation peaked at 9.1% in June
October was 7.7%
The target = 2%
Used cars, clothes and airfares all fell in October pic.twitter.com/nnbs9gbkQX
— Heather Long (@byHeatherLong) November 10, 2022
US inflation, more detail.
13:52
Food prices continued to rise at a painful pace last month.
The food index increased by 0.6% over the month, with the food at home index rising 0.4%. Meats, poultry, fish, and eggs rose 0.6%, while cereals and bakery products jumped 0.8%.
On an annual basis, food inflation was 10.9%, while energy cost 17.6% more than a year ago.
Shelter, motor vehicle insurance, recreation, new vehicles, and personal care all became more expensive in October.
But, there was a drop in the cost of used cars and trucks, medical care, apparel, and airline fares indexes during the month (although all sectors cost more than a year ago).
13:47
America’s cost-of-living crisis seems to be easing, says leading economist Mohamed El-Erian , advisor to Allianz (and president of Queens’ College, Cambridge):
He believs the drop in inflation could help the Fed to ease off on its rapid interest rate rises.
Good news:
US CPI inflation came in better than expected, both for headline (7.7%, 0.4%) and core (6.3%, 0.3%).
Points to some easing in the cost of living pressures that hit the poor particularly hard
Supports some easing of what has had to be a very frontloaded Fed hiking cycle
— Mohamed A. El-Erian (@elerianm) November 10, 2022
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What will happen to the fate of the Republican Party when they dont have inflation to use as a political hammer anymore?
Can they win the 2024 presidential election on the basis that trans athletes are allowed to participate in high school sports?
Probably not.
There is always CRT to obsess over though.
It wasn't much of a hammer. Democrats came out and voted for dimb ass no matter what happened with the economy.
Remember Remember The Eighth Of Roevember!
Be careful on the subway...Best to stay indoors
Glad I am not in a high crime red state...
That's right, you're in the Bronx.
I never have any problems in here. The Puerto Rican girls all call me "Pappi"...
I moved from OKC where crime is worse!
Just admit you called it all wrong, again!
I said I called it wrong (First and only time here)
You were nowhere before the election. JR is the only person I allow leeway. He had the guts to take me on before the election.
That is a high option of yourself you got.
Weren't you all wrong in 2018 and 2020?
Didn't you predict gop wins those years?
No I didn't, nor did I say that the 2020 election was stolen as some have recently accused me of.
I did say that Trump most likely didn't collude with Russia when the Mueller investigation was going on.
I did say that the FBI lied on a FISA Warrant when most here said they doubted the story.
I did say that Cohen being in Prague story was most likely BS.
Most important & conveniently never mentioned here, I famously made a bet with someone who thought Trump wouldn't finish his term in office.
So the other day I predicted a red wave. It didn't happen. You can chalk that one up.
Yikes, such laurels are worthy of a headstone inscription.
In the words of Bud Abbott:
Thanks again Lou!
What makes you think inflation is over?
Where did I say inflation is over? Improve your reading comprehension.
You actually think inflation is no longer an issue?
On what planet are you living?
What do you think is going to happen when Brandon has to replace every barrel of oil he has removed from the Nation's Emergency Oil Reserve? He can't keep just taking from it forever.
Amazing isn't it. It's still fucking 7.7% over last year FFS. And we are to cheer? LMMFAO
It is a sad state of affairs, is it not. The inflation rate in 2021 was 7% thanks to Covid so inflation is up almost 15% since pre-Covid and we're to cheer that it's lower than last month? Well damn.
If a floodwater is up to your neck and then it goes down to stomach level you would not be "happy"? The happiness is relative, but youre still happy.
Inflation dropping, even a half point, is evidence that things are slowly getting better.
John,
You still haven't answered the question yet.
What is going to happen when Brandon has to replace every last barrel of oil he has removed from the Strategic Oil Reserve?
Gas and oil prices are really going to spike. Guess what that will do to inflation?
Don't expect anyone to cheer a slight dip in the unprecedently high inflation; when we all know what is going to happen when Brandon finally is forced to stop kicking the oil can down the road.
The election is over. Republicans will be using Congress as a political hammer. Besides, the party in power only worries about their donor base and not about voter issues. In today's politics only the party that controls Congress can bring home the bacon. And Democrats don't control Congress now.
No. Independent voters are still more concerned about economic issues than social issues and elections can't be won without independent voters. Economics has been Democrats' blind spot for several decades which is why Democrats go over the top on divisive social issues.
It is probable, if not a sure thing, that Democrats will retain control of the Senate (and the presidency). The only thing the Republicans will be unilaterally able to do is issue subpoenas for their upcoming witch hunt investigations and impeachements.
The Senate may once again come down to the Georgia Senate election.
The only thing the Republicans will be unilaterally able to do is issue subpoenas for their upcoming witch hunt investigations and impeachements.
House Republicans will control the purse strings. The wild spending spree is over.
Biden was asked yesterday what he will do differently with a Republican controlled House?
He answered "nothing."
That means the Biden agenda is over.
That is rich after what the Democrats have put this country through for the last 7 years. The Democrat Fascists deserve what they get over Brandon's final two years in office.
Republicans dont mind spending if it is for their pet causes such as lowering taxes on millionaires and billionaires , and expanding military spending, they just dont want to spend money helping the working class or the poor.
The debt didnt come down the last time the GOP controlled the House.
Oh goody, the top 5% could use another tax break.
It is very possible it wont come down to that. The outstanding votes in both Arizona and Nevada may either favor the Democrat, or, in Kelly's case, the Dem lead may be so large that a final push for Masters from last second votes will fall short.
The Dem in Nevada is losing right now but the outstanding votes appear to be more than enough to make up the gap. The outstanding votes are from predominantly Democratic areas.
I don't think you know what the word spending means..
Those are no longer conservatives
Defense and Entitlement spending as a percentage of federal spending:
1952 91% 8%
1962 60% 19%
1972 41% 28%
1982 30% 39%
1992 25% 39%
2002 21% 42%
2012 24% 46%
2022 18% 47%
That is a matter of opinion.
I think the uncounted votes in Arizona are mostly election day votes, which tend to be Republican. So it think Nevada and Arizona may cancel each other out.
The Dem in Nevada is losing right now but the outstanding votes appear to be more than enough to make up the gap. The outstanding votes are from predominantly Democratic areas.
You have that part right. It's the opposite of Arizona.
Republicans have the majority in the House. The absolute best that was possible in the Senate would have been a shift of two seats for either party. But that absolute best was always highly unlikely. The Red Wave narrative was a fiction created by the media to encourage Democrats to turn out. The Democratic Party doesn't have anything to spur enthusiasm from their base.
One of the parties may gain one Senate seat but it's also quite possible that the Senate remains split as it is now. Guess who becomes the target if the Senate remains split?
House Republicans could push tax increases like SALT that would cause Democrats to howl. Can you imagine Senate Democrats opposing a tax increase? House Republicans can take on immigration reform, energy independence, manufacturing resilience, and a host of other issues that are weak spots for Democrats. Democrats are slavering over political side shows because the media favors Democrats and the media can control the narrative. But Democrats have a large number of legislative weak spots that Republicans can capitalize upon.
The Republican Party is no longer the party of Reagan or Gingrich or the TEA Party. The Republican Party has changed and today's Republicans aren't held back by the past. A new Republican Party is emerging but hasn't settled on a policy agenda yet. That's going to happen during the next Presidential election.
Dems had better come up with someone electable for prez in '24
Joe ain't it
Joe beat Trump and would again in a rematch.
7.7% inflation - because the American people wanted.
... and that phrase has been cancelled.
That line did not work because current inflation ressulted from Covid and supply chain issues plus Putin's War in Ukraine and is a worldwide phenomenon exacerbated by Covid spending and irresponsible tax cuts during good times. All the stops were pulled out stimulating the economy when not needed leaving only inflation economically to make up for it in these times. The American voters know Biden and the Democrats are doing what they can to right our boat economically. Things improve in two years.
Inflation is compounding. So it's up 7.7% from 2021, which was up 6.2% from 2020.
We are now at the point in the calendar where one year of high inflation numbers are already baked in, so the fact that it's almost 8% Year over Year is still a very big problem.
.
The party? Whatever! Gas is still almost 6 bucks a gallon where I live.
GDP is negative two quarters (6 months) in a row, but we aren’t allowed to call it a recession. Inflation sneaks under 8% for a month and it’s, “Happy Days Are Here Again!”