Inflation Ticks Slightly Higher, Complicating Fed Outlook \u2013 <\/strong>The U.S. Bureau of Labor Statistics released November consumer price index (CPI) data on Wednesday, which showed prices moving in the wrong direction\u2014but only slightly. The year-over-year CPI print showed a 2.7% increase, with the prices of consumer goods rising at the fastest monthly pace since mid-2023. This single point on goods inflation is notable, because price increases for goods have been improving for over a year, and this is the first setback on that trend we\u2019ve seen in some time. To be fair, this blip in goods inflation was led by vehicle prices, which was partly driven in part by a sharp uptick in sales in Florida and North Carolina due to replacing damaged vehicles from hurricanes. Even still, rising goods inflation comes at a time when the incoming Trump administration is posturing to raise tariffs on key trading partners, which could raise input costs for businesses and result in higher prices for consumers. The core inflation data, which excludes food and energy prices, rose 0.3% month-over-month and 3.3% year-over-year. This inflation print was in-line with what economists were expecting but indicates a \u2018stickiness\u2019 to price pressures in the U.S. economy. As seen on the chart below, the transitory inflation forces appear to have been flushed out, and the \u201clast mile\u201d of improvements on inflation is proving challenging.1<\/sup><\/p>\n\n\n\n Tax Planning? Get Our User-Friendly Guide for 2025<\/a><\/u><\/strong><\/p>\n\n\n\n While tax planning might not be the most thrilling topic, it’s a crucial component of your financial strategy.<\/p>\n\n\n\n Our free guide, Tax Planning in 2025: A User-Friendly Guide2<\/sup><\/a><\/u><\/em><\/strong>, aims to simplify the complexities of tax laws and empower individuals and business owners to make strategic decisions that minimize tax liability. It also covers a range of key tax issues, such as:<\/p>\n\n\n\n If you have $500,000 or more to invest and want to learn more, click on the link below to get your free copy: America\u2019s Cars are Getting Older, and Consumers are Buying Fewer of Them \u2013 <\/strong>There are more cars on the road in America than ever before, at about 290 million light vehicles. Many of them are old. One reason the \u2018fleet\u2019 of cars on America\u2019s roads are getting older is that they\u2019re lasting longer, which is good news generally for consumers. 30 years ago, the average age of a passenger car in the U.S. was 8.4 years old, and today that figure is significantly higher at 13.6 years. But this trend poses a problem for automakers and the industry, given that higher interest rates, inflation, and better-built cars means fewer buyers and total sales. As seen on the chart below, total annual light vehicle sales are running below historical levels. According to the Bureau of Economic Analysis, the four-year rolling average of annualized sales is about 15.5 million, compared to 17.7 million at the end of 2019.4<\/sup><\/p>\n\n\n\n One ancillary effect of longer-lasting, older vehicles is that consumers generally need to perform more maintenance on them over time. But once again, inflation and squeezed consumers on the lower end of the income spectrum show that many of the recommended service intervals are lapsing. Carfax recently said that 30% of cars on America\u2019s roads were overdue for tire rotation with nearly 20% running late for an oil change. With an index for used vehicle sales up 36% in the last five years, the takeaway here is clear: perform the needed maintenance to take advantage of a relatively strong resale market.<\/p>\n\n\n\n Why Your Cup of Coffee May Be Even More Expensive Next Year \u2013 <\/strong>Consumers are feeling fatigued over the prices of many everyday items, with a cup of coffee being no exception. Prices may go even higher from here. Futures prices for high-end arabica beans blew past a record set in April 1977 and are up over 35% since October. Brazil is a key exporter of arabica beans, and a spell of hot, dry weather hit this summer just as Brazil\u2019s coffee trees were bearing fruit and developing the next batch of buds. The result was a weak harvest, which has many speculators betting that next summer will also produce an uninspiring batch of beans. This speculation drives futures prices higher. It\u2019s not necessarily all bad news, however. Coffee brewers often eschew more expensive arabica beans during periods of high prices and instead favor other varietals, like robusta beans and others that are sourced elsewhere, like Vietnam.6<\/sup><\/p>\n\n\n\n\n
Download <\/a><\/u>Tax Planning in 2025: A User-Friendly Guide2<\/sup><\/u><\/a><\/em><\/strong><\/p>\n\n\n\n![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2024\/12\/image-1-1-1024x347.png\")
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