The Inflation Bazooka Wasn’t – Market Update 11 Dec 2021 [Podcast]

Markets in the US had a strong end to the week, as investors reacted to the fact that November’s consumer prices gains met expectations, and continue to hope it will fall back, so easing pressure on the Federal Reserve to accelerate it taper and the timing of a rate hike.

Looking to next year, supply chain challenges will continue to drive up prices in the near term but are expected to fade as Americans shift toward more normal consumption patterns. Still, other factors, like labor constraints and housing costs, may keep inflation elevated.

The CPI report from the Labor Department showed consumer prices surged last month to a 6.8% annual growth rate, the highest reading in more than 39 years.

While that was distorted to a degree by upheavals in prices a year ago due to the pandemic, the core rate — which strips out more volatile food and energy prices – also hit a 30-year high of 4.9%. The headline rate rose by 0.8% on the month and the core rate by 0.5%, both chunky increases that suggest that companies are still able to pass on higher costs to their customers more or less at will.

CONTENTS

0:00 Start
0:17 Introduction
1:57 US CPI
4:00 Inflation – Here To Stay?
7:00 Political Reaction
7:45 Market Movements
10:29 Coffee Futures
12:03 Short Sellers Under Scrutiny
12:57 UK Markets on Plan B
15:15 You Can’t “Invest” In Crypto
17:40 China Evergrande
18:45 WCI Index Up Again
19:25 Australian Market
21:38 Summary and End

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