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Forbes
188 days

Inflation Was 3% In January As Egg Prices Soared 15%

1. January CPI inflation reached 3%, exceeding estimates of 2.8%. 2. Core inflation increased by 3.3%, surpassing the forecast of 3.1%. 3. Egg prices soared by 15.2% monthly and 53% yearly, driving food inflation. 4. Inflation remains above the 2% target, impacting Federal Reserve's rate decisions. 5. Trump advocates for interest rate cuts before tariffs take effect.

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FAQ

Why Bearish?

Higher-than-expected inflation could lead to sustained interest rates, pressuring S&P 500. Similar past scenarios suggest prolonged market volatility when inflation exceeds forecasts.

How important is it?

Inflation reports directly impact investor sentiment and market valuations of S&P 500 companies.

Why Long Term?

Persistent inflation may inhibit economic growth, influencing S&P 500 performance over time. Previous occurrences of high inflation had long-lasting effects on market sentiment.

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