In November 2024, U.S. inflation edged up slightly. Prices rose by 2.7% compared to the same time last year, a modest increase from October's 2.6%. While this may seem like a small change, it’s important to remember that high inflation can erode purchasing power and uncertainty about future price levels can hinder economic growth and investment. In recent years, global supply chain disruptions, geopolitical tensions, and increased demand have contributed to elevated inflation rates worldwide.

What's Driving November’s Inflation?

The driver behind November's price hike was the cost of housing. This is a persistent issue that has been affecting consumers for some time. However, compared to the sky-high inflation we saw a couple of years ago during the Russia-Ukraine conflict, things are much calmer now.

Simpan Views

What Does This Mean for the Fed and Your Investments?

The Federal Reserve, the U.S. central bank, has been working to cool down the economy by raising interest rates. But with inflation easing, they're now considering cutting rates to stimulate growth. Many experts predict a 0.25% rate cut at their next meeting.  

How Does This Affect Us in Indonesia?

While the impact of U.S. rate cuts on the Indonesian market may be indirect, focusing on domestic opportunities can help mitigate potential risks. For Indonesian investors, a stable economic environment and attractive real interest rates make fixed-income investments like Simpan Bond Fund a prudent choice. The fund offers a balanced approach, delivering income generation and wealth preservation over the medium term.