Mixed Markets: Inflation, Business Confidence and Political Expectations Mark the Week

This week, the United States showed a mixed economic and political picture, with progress on some fronts and warning signs on others. Inflation again took center stage following the November Consumer Price Index (CPI) report, which reflected a 2.7% year-over-year increase, up slightly from October's 2.6%. Although core inflation remained stable at 3.3%, the overall increase raises concerns that inflationary risks may persist. Despite this, markets continue to anticipate a 0.25% interest rate cut at next week's Federal Open Market Committee (FOMC) meeting. One positive was the moderation in housing-related inflation, which showed its smallest monthly increase since April 2021, rising just 0.2%.

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