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Inflation data in the United States from September leads us to believe that the Fed will have to choose between a Soft landing and a possible recovery in the economy, or a Bumpy landing and complaints from users to the company.
The data delivered by the American statistical research agency showed good and bad news. The good news is that price gains have slowed significantly from last year's highs, especially when looking at an indicator of underlying, or "core," inflation that excludes volatile food and energy prices. However, the bad news is that, following a sharp slowdown in underlying inflation in early summer, these prices have risen and appear to be plateauing at a slightly faster rate than the Fed intended.
The latest inflation data highlights the risk that without a further slowdown in the economy , inflation could stabilize around 3%, which is above the 2% inflation rate the central bank has set as a target. Furthermore, recent progress in reducing inflation stalled in September, offering the latest sign that the path to fully eliminating price pressures remains uncertain.
What is the relationship between inflation and the consumer and investor?
Inflation data is important metrics for both investors and consumers, as inflation is an invisible cost that affects the standard of living of these two people.