Skip to main content. Skip to contact links. Skip to navigation. If you wish for the loan officer to reach out to you, click to skip to their contact form. If you have questions for this loan officer, click to call them. If you need loan servicing, click to call our loan servicing department at 855-979-1084 Skip to footer navigation.
Bruce Barilar headshot

Bruce Barilar

Branch Manager
Movement Mortgage
NMLS ID # 131218

December Inflation Higher Than Expected

By: Movement Staff
January 12, 2024
A relatively quiet economic data week preceded Thursday's Consumer Price Index (CPI) report. Confidence in the market's rate-cut sentiment took a hit last week as the Non-farm Payroll report came in hotter than expected. At the start of this week, Federal Reserve governors, once again on the speaking circuit, pushed back against the early rate-cut narrative. The highly anticipated CPI report, released on Thursday, revealed that December CPI exceeded expectations. Headline CPI year-over-year increased by two-tenths, while core CPI rose by one-tenth year-over-year.

Despite the unexpected CPI news, markets remained relatively calm, with the 10-year yield initially rising about 8 basis points before retreating to pre-report levels. The Producer Price Index (PPI), released on Friday morning, turned out softer than anticipated, with both Headline and Core year-over-year numbers falling below expectations. As of writing this, yields are decreasing as markets try to assess how the PPI number will impact future Fed policy. As mentioned last week, the ongoing tug-of-war between the markets and the Fed regarding rate cuts is expected to persist, resulting in continued volatility.

Author: Movement Staff

The Market Update is a weekly commentary compiled by a group of Movement Mortgage capital markets analysts with decades of combined expertise in the financial field. Movement's staff helps take complicated economic topics and turn them into a useful, easy to understand analysis to help you make the best decisions for your financial future.

RELATED

Bruce Barilar headshot
Bruce Barilar
Branch Manager
Wondering how much home you can afford? Let’s talk about your next move!
750 East Park Dr, Ste 104, Harrisburg, PA 17111
(opens in a new tab)
NMLS # 131218

State License #MD-131218, OH-MLO-OH.131218, PA-28927