- Monthly headline CPI rose 0.1% in November, matching expectations and up from no change in October. The core CPI increased 0.3% versus the 0.3% forecast and 0.2% prior month.
- November’s inflation figures support the narrative of a gradual disinflationary trend in the U.S. economy. Price pressures continue easing back from 40-year highs, though still above the Fed’s 2% target.
- The data reinforces expectations that the Fed can move to less aggressive rate hikes going forward.
The U.S. Consumer Price Index (CPI) for November met economist forecasts, with headline inflation slipping to 3.1% versus 3.2% a month earlier. The core inflation rate, which excludes food and energy, rose 4% from a year ago, in line with expectations.
November CPI Data
Monthly headline CPI rose 0.1% in November, matching expectations and up from no change in October. The core CPI increased 0.3% versus the 0.3% forecast and 0.2% prior month.
Market Reaction
The price of bitcoin was little changed following the report, holding modest gains around $41,900. The data is unlikely to alter the view that the Federal Reserve will remain on hold at its next two meetings, keeping rates at 5.25-5.50%.
U.S. stock index futures ticked higher after the release. The 10-year Treasury yield dipped to 4.22%.
Conclusion
November’s inflation figures support the narrative of a gradual disinflationary trend in the U.S. economy. Price pressures continue easing back from 40-year highs, though still above the Fed’s 2% target. The data reinforces expectations that the central bank can move to less aggressive rate hikes going forward.
