Inflation expectations back to two decade highs.
Two years of rate hikes unraveling as Powell will be forced to do a Volcker pivot sooner than later. pic.twitter.com/pHYM4Q5Mjq
— Mac10 (@SuburbanDrone) November 6, 2024
The World ex-U.S. just failed at the 50 dma for the first time since August. pic.twitter.com/hlD7F41nBM
— Mac10 (@SuburbanDrone) November 6, 2024
We’ve been warned. pic.twitter.com/On6pMZNMtx
— Mac10 (@SuburbanDrone) November 6, 2024
Inflation has been an incumbent-killer everywhere. The U.S., it turns out, was not an exception. t.co/rOKpcGBK5F
— Greg Ip (@greg_ip) November 6, 2024
“Gold has made 39 new highs, the second highest annual tally on record.”@GOLDCOUNCIL pic.twitter.com/jfqsHO7uuF
— Daily Chartbook (@dailychartbook) November 6, 2024
Further to the earlier post, US government bond yields have continued to increase (with the 10-year now trading at 4.45%).
As also illustrated below with the move in 2s-10s, the curve is steepening.#economy #markets #bonds pic.twitter.com/oOc5ok87z9— Mohamed A. El-Erian (@elerianm) November 6, 2024
The financial strain on American households is intensifying in 2024, with essentials surging in price and debt levels climbing:
- Food Inflation: Food prices have jumped 22% since early 2021, with some items, like eggs, skyrocketing by 87%. Basic groceries are becoming increasingly unaffordable for many.
- Auto Insurance: Rates have surged 47%, making car ownership more burdensome for consumers.
- Gasoline Prices: Though gas prices have recently dipped, they are still up 16% since 2021.
- Debt Delinquencies: With the delinquency rate at 2.74%, the highest in nearly 12 years, consumers are showing signs of severe financial stress.
- Consumer Price Index (CPI): Year-over-year, the CPI rose 2.9% as of July 2024, signaling that overall inflation remains stubbornly high.
- Housing Costs: Rent and home prices continue to rise, with certain metro areas experiencing particularly sharp increases. The housing market remains a major strain on budgets.
- Utility Costs: Electricity costs are up 28%, adding to monthly expenses as people face rising energy bills.
- Wholesale Prices: A slight increase in wholesale prices points to ongoing supply chain pressures feeding inflation.
- Consumer Sentiment: Confidence remains low as households grapple with elevated living costs, with many worried about affording essentials.
Sources:
CNBC – CPI Data September 2024:
CNBC – Why Inflation May Look Like It’s Easing But Is Still a Huge Problem
