Dividend Stocks

Do The Latest Inflation Reports Signal More Fed Cuts Ahead?

Recently, I went to the grocery store to buy a few essential things: milk, bread, eggs, etc.

As I went to grab my usual gallon of whole milk, I quickly glanced at the price and did a double take.

I thought to myself, “This can’t be right.” The price was up nearly $0.20 since the last time I was at the grocery store just weeks ago, and higher than I’d ever paid before. While I couldn’t leave the store without getting milk, I did consider getting a smaller size or even skipping it altogether. But I knew I would regret it.

When I got home, I did some digging into what the cost of milk was in the past (I am a numbers guy after all). I found that in August, the average price for a gallon of milk was $4.044, according to the Bureau of Labor Statistics (BLS).

Now, that’s off from the peak of $4.22 per gallon in November 2022. But that same gallon of milk would have only set you back by about $3.25 in January 2020 – before the onset of the COVID pandemic.

That’s still a 24% increase, folks. But it isn’t just a random increase; it’s a snapshot of a much bigger picture… inflation.

Now, we got a fresh look at that picture this week – in the form of the September inflation reports. Each percentage point tells us a story about the economy, how prices are shifting and how it impacts your wallet.

For example, Thursday’s Consumer Price Index (CPI) report showed that the average price for a gallon of milk in September was $4.021.

As always, Wall Street was eager to see whether inflation was in check following last month’s interest rate cut to ensure that future key rate cuts are still on the table.

So, with that in mind, I want to use today’s Market 360 to review the latest CPI and Producer Price Index (PPI) reports. And with the latest inflation data now in Wall Street’s rearview mirror, I will also share the types of companies you should be investing in now.

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