Inflation rose as expected in November, with the Consumer Price Index (CPI) report showing that the index rose by 0.3% month-to-month, a 2.7% rise year-to-date. The print comes just ahead of the Federal Reserve's final meeting of 2024.
PIMCO managing director and economist Tiffany Wilding joins Julie Hyman and Josh Lipton on Market Domination to discuss her inflation outlook given current economic conditions.
The economist explains that while there has been some "near-term price acceleration," but, "when we look at a broader range of data and a broader range of trends within the CPI, what we see [is] that labor markets now look more balanced than any time since the pandemic."
Labor markets are "arguably looser than they were in 2019," she adds, noting "Some of that has been the result of the immigration flows into the United States we've seen over the last few years."
"Because labor markets are balanced, they aren't a source of inflationary pressure, and so as a result of that, you should see inflation gradually moving toward [the] target."
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This post was written by Naomi Buchanan.