Nick Timiraos, chief economics correspondent at The Wall Street Journal, reported Monday on X that economists are forecasting a moderation in core Consumer Price Index (CPI) growth for October. Timiraos stated that economists "expect growth in the core CPI to have moderated in October to around 0.22%, though the full range of estimates is broad enough to round down to 0.1% or round up to 0.3%." He noted that a direct year-over-year comparison is not available due to a government shutdown in October 2025.
This forecast comes as financial markets closely watch inflation data for signals on future monetary policy. Recent Gokhshtein Media coverage highlighted oil's 2.5% slide, which crushed inflation bets, and a corresponding fall in 10-year Treasury yields by 4 basis points. The broader market saw gains today, with the S&P 500 up 2.3% and the Nasdaq climbing 2.7%. The Crypto Fear & Greed Index currently sits at 29, indicating 'Fear' in the digital asset markets.
The anticipated moderation in core CPI, if confirmed, could influence Federal Reserve policy decisions, potentially easing pressure for further interest rate hikes. Timiraos's report suggests that despite the range of estimates, the general expectation leans towards a slower pace of inflation. Investors will likely scrutinize the official CPI release for confirmation of this trend and its implications for economic growth and asset valuations.
