Investment insights from Capital Group
‘Immaculate disinflation’? Cooling prices amid low jobless claims
Sources: Capital Group, Bureau of Labor Statistics, U.S. Department of Labor. CPI is the year-over-year change in the Consumer Price Index for All Urban Consumers. Initial jobless claims represent new claimants for unemployment benefits. As of 30 September, 2023.
Slowing rent puts the Fed’s 2% target within reach
Sources: Capital Group, U.S. Bureau of Labor Statistics, Zillow. The Zillow Observed Rent Index (ZORI) is a smoothed measure of the typical observed market rate rent across a given region (shown above for the entire U.S.) and is weighted to the rental housing stock to ensure representativeness across the entire market. The change in the ZORI is represented by the year-over-year percent change. CPI above refers to the Consumer Price Index for All Urban Consumers, and the line above represents the annualised monthly percent change in the Rent of Primary Residence component (average across all U.S. cities). As of 30 September, 2023.
Stocks and bonds have done well in various inflation environments
Sources: Capital Group, Bloomberg Index Services Ltd., Bureau of Labor Statistics — U.S. Department of Labor, Standard & Poor's. All returns are inflation-adjusted total real returns. U.S. stock returns are represented by the S&P 500 Index. U.S. bond returns are represented by the Bloomberg U.S. Aggregate Bond Index. Inflation is represented by the year-over-year change in the U.S. Consumer Price Index (CPI) for all urban consumers. Data is monthly from December 31, 1976 – September 30, 2023. Past results are not predictive of results in future periods.
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Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.