CPI is now 6.5% yoy. It will be 2.5% yoy by June. Thus, expect CPI to drop 0.7% points each month between Jan and June. The Fed doesn’t meet until late Jan/early Feb, meaning we won’t see Jan CPI figure in early Feb before the meeting. Fed may raise rates 0.25% points to signal the labor market to keep wage increases low. That is the only market that actually has price increases.
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Last edited: Jan 27, 2023