Inflation has been increasing, not decreasing since the middle of 2024 if you look at it granularly. The Compounded Annual Rate of Change for CPI in October was 2.97% and without Food and Energy 3.42%. If you want to understand inflation trends you need to look at the Monthly Compounded Rate in addition to the Year Over Year numbers. The trend in inflation since the middle of 2024 is clearly volatile and if there is a trend, it is up, not down since May 2024. The Federal Reserve graphic here can be found athttps://fred.stlouisfed.org/graph/?g=1AK7r It shows that the battle with inflation is not over.
What do you think this will do to the path of Fed Funds?
------------------------------ Neil Stanley ------------------------------
The trend in inflation since the middle of 2024 is clearly volatile and if there is a trend, it is up, not down since May 2024.
The Federal Reserve graphic here can be found at https://fred.stlouisfed.org/graph/?g=1AK7r It shows that the battle with inflation is not over.