#CPIWatch

📊 Inflation and Federal Decisions

1️⃣ Inflation data for September:

• Core PCE: rose to 2.8% (highest since October 2023)

• Core inflation (Core PCE): slightly decreased to 2.8% against expectations of 2.9%

2️⃣ Why will the Federal continue to lower interest rates?

• The decision depends on the overall trend of inflation and economic activity, not on one month.

• The Federal prefers to support growth and ease financial tightening, with stable medium-term inflation expectations (2–2.5%).

3️⃣ Summary:

• Rising core inflation = yellow light 🚦

• Falling core inflation = green light ✅

→ Rate cuts continue but with great caution.