Inflation Cools More Than Expected in November; CPI, Core Undershoot Forecasts

U.S. inflation eased more than anticipated in November, offering fresh confirmation that price pressures continue to moderate. The Consumer Price Index rose 2.7% year over year, below the 3.1% consensus estimate and down from 3.0% in September, according to data released Thursday by the Bureau of Labor Statistics.

Core CPI—which strips out the more volatile food and energy categories and is closely watched by the Federal Reserve—also cooled, rising 2.6% from a year earlier. That compares with expectations of 3.0% and marks a deceleration from 3.0% in September.

Given the BLS canceled the October report due to data-collection disruptions caused by the government shutdown, no month-over-month inflation rate was released, leaving a two-month gap in the sequential trend.

Still, November’s softer readings add momentum to the Fed’s view that inflation is gradually moving closer to its 2% target. That view helped persuade policymakers to deliver a rate cut last week, even as inflation remains moderately above goal.

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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