The latest economic data reveals a troubling scenario. Inflation for September 2024 exceeded expectations, with core inflation rising to 3.3% year-over-year, outpacing forecasts. This uptick in inflation comes at a time when jobless claims have surged to 258,000, the highest level in over a year, further compounding concerns.
The combination of rising inflation and increasing unemployment is particularly alarming, as it raises the specter of stagflation. Stagflation, characterized by high inflation, rising unemployment, and stagnant economic growth, could pose a significant challenge for policymakers. With inflation eroding purchasing power and unemployment climbing, the pressure on households and businesses will intensify, and economic momentum may slow further.
Worst initial claims in a LONG while
To some extent driven by Florida/North Carolina, but the weakness is broad-based pic.twitter.com/sycAdK9LKP
— Andreas Steno Larsen (@AndreasSteno) October 10, 2024
*US SEPT. CONSUMER PRICES RISE 0.2% M/M; EST. +0.1%
*US JOBLESS CLAIMS 258,000 IN OCT. 5 WEEK; EST. 230K#Inflation pic.twitter.com/d1yzFkwqnn
— Christian Fromhertz 🇺🇸 (@cfromhertz) October 10, 2024
#inflation “cooled” while “running slightly hotter”. Who writes this pic.twitter.com/ryH9NEfqQq
— Kris Siemionow, MD, PhD (@siemionowkris) October 10, 2024
Rising oil prices are driving inflation, increasing costs for production and transport.
For traders, this could mean central banks will stay hawkish longer.
Watch oil closely—it’s a key inflation driver!#forex #forextrading #fundamentalanalysis #inflation pic.twitter.com/R0GHq3yzEQ— Financial Source (@FinSourceco) October 9, 2024
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