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 of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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