Moody's Talks - Inside Economics Inflation, Tariffs, Spreads…Hike?
Dec 13, 2024
Matt Colyar, Assistant Director at Moody's Analytics, shares his insights on inflation data and its impact on interest rates. The conversation highlights persistent inflation challenges, particularly in food and housing. They discuss the Federal Reserve's strategies amidst a strong economy and the potential for interest rate hikes. Additionally, the impact of recent hurricanes on vehicle prices and the relationship between inflation metrics and economic indicators take center stage, making for a rich economic analysis.
AI Snips
Chapters
Transcript
Episode notes
Inflation Stickiness
- November's CPI inflation rose slightly, driven by food and shelter costs.
- However, falling goods prices, especially vehicles, previously moderating inflation are no longer declining.
Vehicle Price Increase
- Hurricanes may have increased used car prices by reducing supply and raising demand.
- Alternatively, the auto market may have simply rebalanced after supply chain disruptions.
Medical Care Inflation
- Medical care service inflation is accelerating, unlike other major components.
- This is due to healthcare's delayed cost pass-through to consumer prices.