On November 13, 2024, the US Consumer Price Index (CPI) rose by 2.6% compared to the previous year, surpassing the 2.4% increase recorded in September. This uptick raises concerns regarding the Federal Reserve's potential interest rate cuts before the year's end. Month-over-month, the CPI showed a stable increase of 0.2%, aligning with economists' forecasts.
Core inflation, excluding food and energy prices, increased by 3.3% year-on-year in October, with a month-over-month rise of 0.3%. Stock futures saw a decline as market attention shifted towards CPI data, which will significantly influence the Fed's upcoming meeting scheduled for December 17-18. Currently, there is a 62.1% probability that the central bank will lower rates at this meeting.
Despite a significant decrease in inflation from its pandemic peak of 9% in 2022, achieving the Fed's 2% target remains challenging. Additionally, the US Bureau of Labor Statistics reported that only 12,000 jobs were added in October, a stark contrast to the 100,000 expected, marking the lowest job growth since December 2020. The unemployment rate remained steady at 4.1% with approximately 7 million individuals unemployed.
In South Korea, the benchmark Kospi index dropped by 2.3%, reaching its lowest level in a year. This decline was driven by foreign investors selling shares of major exporters, particularly Samsung Electronics, amid fears surrounding the protectionist trade policies of US President-elect Donald Trump. The Kospi's performance made it the worst-performing index in Asia on that day.