#CPIWatch
Inflation Isn’t Gone — It’s Just Hiding in Plain Sight
📊 United States: CPI Holds Steady at Elevated Levels
U.S. inflation remains around 3.0% year-over-year, unchanged in recent months and slightly below consensus forecasts — underscoring persistent price pressures even as monetary tightening bites. Core CPI (excluding food & energy) is expected to tick up slightly, highlighting stubborn underlying inflation.
📈 Europe & OECD: Mixed But Stabilizing Prices
Across the OECD, headline inflation is broadly stable at moderate levels, with food and energy price contributions diverging between countries. A number of European economies are showing slowing food inflation and energy inflation turning negative — a sign of easing pressure on households.
🇨🇳 China: Consumer Prices Hit 21-Month High But Deflation Deepens
China’s CPI rose modestly — the highest in nearly two years — yet producer prices continue deepening deflation, signaling weak domestic demand and continued economic imbalance.
🇮🇳 India: Inflation Rebounds but Remains Low
India’s CPI climbed to 0.71% in November 2025, up sharply from a multi-decade low, but well below the RBI’s 2-6% target range. Economists see this as easing inflationary pressure that could support future rate cuts.
📉 UK & Global Policy Outlook
UK inflation has eased from earlier peaks, pressuring policymakers toward potential rate cuts as economic growth falters. Financial markets are pricing in dovish moves by major central banks amid decelerating price trends.
🔥 Market Impact & Forward Look
Persistently elevated inflation readings despite easing trends are keeping markets on edge. Central banks are balancing growth concerns with price stability goals — every CPI release now drives volatility in equities, bonds, currency, and commodities. Investors and policymakers alike are on high alert as 2026 begins.
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Inflation slows, but discipline wins — those who watch CPI early, move first.
