US stocks surged last night. The three major indices all rose more than 1%, and the NASDAQ soared 2.37%. The main reason is that the October CPI and core CPI data fell short of expectations. Overall inflation rose 3.2% year over year, remained flat month on month, down 0.5 percentage points from September. Core CPI rose 4.0% year over year and 0.2% month over month, both down 0.1 percentage points from September. This shows that, with the exception of food and energy prices, prices have risen 4.0% over the past year and are up 0.2% from the previous month.
Although the current rate of inflation is still relatively high, the momentum of inflation has begun to slow, which is in line with the October non-farm payrolls report.
Energy pricesThe year-on-year decline was 4.5%, and the year-on-year decline was 4.0 percentage points higher than in September, and faster than the previous month. Falling energy prices are likely to lower the cost of other products and services, thereby helping to curb inflation.
Food pricesThe year-on-year increase was 3.3%, down 0.4 percentage points from September, and the growth rate was slightly slower than the previous month. While rising food prices may increase the cost of living for consumers, a slowdown in their growth rate may help stabilize inflation.
Core productsThe month-on-month decline in growth was 0.3 percentage points narrower than in September to 0.1%.
Core service loopThe ratio was up 0.3%, down 0.3 percentage points from September.
Overall, the core CPI for October continued to decline year on year, increasing month on month...