Caution surrounds 'stubbornly high' inflation despite further US CPI falls

‘Investors need to be careful’

US CPI inflation fell to 7.1% this month, slowing faster than the anticipated 7.3% and down further from October’s print of 7.7%.

However, despite recording the lowest CPI figures since December 2021, investors are urging caution rather than unbridled optimism, as Callie Cox, investment analyst at eToro pointed out. Yellen predicts US inflation will be lower next year "Services inflation accelerated again last month and that has got to give the Fed some pause in declaring this report a victory," she explained. "The Fed has more control over services prices, so fiery hot services inflation could hint that Powell needs the economy to cool down more." "Inflation still is not fully handled and it is easy for ...