Inflation Trends and Consumer Sentiment

Recent data reveals a slight increase in core goods prices, which raises concerns among investors, although this is in contrast with the overall trend of declining goods prices observed over the past year. The consumer price index (CPI) indicates that while overall inflation has calmed, services inflation remains high, particularly in housing and non-housing sectors. Despite falling inflation rates over recent years, high price levels still impact household budgets heavily, leading to cautious consumer sentiment. The upcoming New York Fed survey on consumer expectations will be crucial in assessing how consumer attitudes might shift moving forward.