CPI rising

The usa announced on November 13, 2024 at 22:30CPI (year-on-year)results compared to 2.4% last month2.6%was.

This isa factor for the stock market downturn.

Rate cutBecause it becomes a disadvantage.

Announced simultaneously,Core CPI (year-on-year)was the result compared to the previous month's 3.3%.3.3%It was.

Both are data for last month, October.

CPIThe 6-month consecutive decline in CPI has come to a stopInflation reignitingevoked memories of

Core CPI, which turned upward in last month's announcementremains flatCurrently

remains flatRate cutIt is also important to carry out.

Ideally, inflation reignition is a negative point and a factor for stock market declines, howeverCore CPIremains flat, making it difficult to determine.

In a situation where inflation is subdued,the rise in CPIis a factor for stock market declines.

The market knows about the rate cut and long-term interest rates are rising in contrast to the policy interest rate. The stock market is tolerating inflation.

Stock priceThere is also a pattern in which it becomes.

Even if inflation acceleratesResidential marketandCCIrises, the stock pricerisesWill do.

The USDJPY exchange rate is seeing a depreciation of the yen.The US dollar is strong.It is swinging. Despite being in a phase of interest rate cuts, the dollar is being bought.

The Federal Reserveis not afraid of inflationinterest rate cut willBuyers are dominant.It is also fully conceivable.

If excessive inflation accelerates too much, it will have a negative impact on economic activities, so this is stock market declineIt will become a factor.

Returning to the origin, " Why is it important to stabilize inflation?" is easier to understand when considering it.

If prices rise too rapidly, consumers will no longer be able to buy things as wage increases will be outpaced.

Healthy economic growth cannot be expected with this.

Even in a somewhat high inflationary phase where economic growth can be expected, as long as there is a trend of economic growthStock prices are rising.expected.

It is not a simple scenario of price increase leading to stock price decline, but rather examining whether economic growth can be expected or if the economy will slow down. This is determined by looking at economic indicators.

Even in a situation where economic growth continues, if a rate hike seems likely, it will lead to a decline in stocks.

This is because the rise in policy interest rates slows down economic growth.