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Five things we’ve learned this week about inflation — and why it’s so hard to kill the beast - MarketWatch

1. U.S. inflation rebounded, complicating Fed's interest rate plans. 2. Consumer prices rose to 3%, challenging disinflation efforts. 3. Service inflation remains high, impacting consumer spending behavior. 4. Raw material costs surged 5.5% in January, affecting overall inflation. 5. Businesses are cautious about potential price increases from new tariffs.

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FAQ

Why Bearish?

Rising inflation can lead to increased costs for Deere, impacting margins. Past examples show sharp inflation correlations with stock dips.

How important is it?

Inflation dynamics are crucial for broader economic health, influencing DE's operational costs significantly.

Why Short Term?

Immediate inflation pressures could affect quarterly results, but long-term effects remain uncertain.

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