

Consumer prices rose less than expected in November, giving investors hope that inflationary pressures may be cooling enough for U.S. monetary policy to be eased more than Wall Street anticipates. The consumer price index rose at a 2.7% annualized rate last month, a delayed report from the Bureau of Labor Statistics showed. Economists polled by Dow Jones expected the CPI to have risen 3.1%. The core CPI, which strips out volatile food and energy prices, was also cooler than anticipated, increasing 2.6% over 12 months. It was expected to have risen by 3%.
The monthly increases also were less than expected, with both the all-items and core CPI gains at 0.2%, compared to estimates of 0.3%. This is the first report that encompasses the period during which the U.S. government was shut down. The stoppage disrupted the data collection process in that time. It also led to the cancellation of the October CPI release. This data was originally expected to be released Dec. 10. Since the October CPI was canceled, Thursday’s report did not have all the usual data points of a typical CPI release. The BLS said it was unable to retroactively collect the October data, but did use some “nonsurvey data sources” to make the index calculations.
Source: CNBC
Important note and disclosure: This article is intended to be informational in nature; it should not be used as the basis for investment decisions. You should seek the advice of an investment professional who understands your particular situation before making any investment decisions.