American analysts and investment funds warned the participants in the stock market on a record price increase in the United States, writes CNBC. According to their forecasts, monthly inflation at the end of November, the value of which will be published on December 10, can reach 0.7 percent, and the annual – 6.7 percent, which will be the highest indicator since 1982.
We are talking about the consumer price index – the main indicator in which in many countries, including in the United States, measures the level of inflation. The index includes prices for a wide range of consumer goods, including food, fuel, as well as animal goods and even indoor plants.
In 1982, the United States experienced the stagflation period – the phenomenon first manifested with the presidency of Ronald Reagan and expressed in the simultaneous rapid increase in prices (inflation) and the decline in the economy (stagnation). In a normal situation, growing prices and demand provoke an increase in production and investment growth, and declining prices stimulate companies to reduce production capacity in the absence of demand for products.
Lightweight base index that does not include prices for food, energy and fuel are expected to grow by 0.5 percent at the end of November and 4.9 percent in annual terms, which will also become a record, but since 1991 .
Analysts respondents noted that high-inflation data negatively affect the stock market, which is waiting for correction and lower prices for some assets. The federal reserve system in such conditions may decide to accelerate the folding of the quantitative mitigation program. At the moment, the regulator reduces the volume of purchases of state and mortgage bonds by $ 35 billion every month.