Business

“Hope for the best, prepare for the worst” to October CPI

CNBC’s Jim Cramer told investors Tuesday of his expectations for the October CPI report.

“Maybe this time it will be different, maybe… But now, when it comes to the consumer price index, I think we are hoping for the best, preparing for the worst,” he said.

The consumer price index measures the prices that consumers pay for various goods and services. Investors will watch for any signs of declining inflation in a report due Thursday morning.

The October CPI reading may give an indication of whether the Federal Reserve will correct the pace of interest rate hikes next month. The report also has implications for the stock market, which is already nervous this week due to Tuesday’s midterm elections.

“We’re all concerned about the consumer price index – every time this key inflation indicator gets too hot, interest rates soar and stocks fall,” Cramer said, adding that many of the report’s inputs, including food and energy, are already too high. high.

But what worries Cramer the most is that the current CPI estimates don’t seem to take into account the multiple price increases that companies have implemented.

“What I don’t understand is how the consensus just can’t take these higher prices into account. The numbers always seem too low, as if the people who make the forecasts have never been to the supermarket,” he said.

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