Economics
It’s Too Soon for Stock Investors to Call Victory on Inflation
- S&P 500 has rebounded 14% from October low on price slowdown
- Put-to-call skew on the SPY ETF rises to highest since August
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Investors are paying up to protect themselves in case the stock market sinks with a key inflation reading due this week, which is expected to show that prices aren’t moderating the way the Federal Reserve would like to see.
Tuesday’s consumer price index report is forecast to show a deceleration in annual price growth to 6.2% in January. The core CPI, which strips out volatile food and energy components and is seen as a better underlying indicator than the headline measure, is projected to rise 0.4% month over month and 5.5% from a year earlier.