New inflation data on Wednesday showed consumer prices rose more than forecast in November, keeping the Federal Reserve on track to cut interest rates again in December.
The more recent information From the Bureau of Labor Statistics has shown that the Consumer Price Index (CPI) rose 2.7% over the previous year in November, a slight increase. from October an annual gain of 2.6% in prices. The annual increase is in line with economists’ expectations.
The index rose 0.3% from the previous month, ahead of the 0.2% increase seen in October and in line with economists’ estimates. This was the biggest monthly gain since April after rising 0.2% four months earlier.
On a “peak” basis, which excludes fixed costs of food and gas, prices in November rose 0.3% in the previous month, compared to October, and 3.3% over last year for the fourth month in a row.
The sticking point is “a bit confusing,” Paul Ashworth, North American economist at Capital Economics, wrote on Wednesday. “But we don’t expect them to persuade the Fed to cut another 25bp rate at next week’s FOMC meeting.”
The average drop rate has remained high because of the high cost of accommodation and services such as insurance and health care. Used car prices also rose month-on-month, rising 2% in November amid rising resale prices.
At the same time the report, markets continued to depreciate Another 25-point cut is expected at next week’s central bank meeting, with the chance of a cut increasing to 97% from 89% the other day.
“As markets hit their highs today and fear a shock, the online number is well received,” wrote Seema Shah, global chief strategist at Principal Asset Management. “But overall, the Fed will be concerned about the tightening of interest rates and will be more wary of the risks posed by a president-elect Trump.”
“We expect the Fed to stop hiking in January, adopt a cautious tone, and reduce their pace at any other meetings.”
Federal Reserve Chairman Jerome Powell speaks at the DealBook Summit in New York, Wednesday, Dec. 4, 2024. (AP Photo/Seth Wenig) ·ASSOCIATED PRESS
Accommodation, food is sticky
The most notable call from the inflation print included accommodation, which rose 4.7% unchanged, year-on-year, lower than October’s 4.9% increase. The index rose 0.3% month-on-month after rising 0.4% in October.
Lodging contributed about 40% of the monthly increase in inflation, the BLS said. Rising housing prices it is attributed to high inflation, according to economists.
At Yahoo Finance’s Investment conference last month, Minneapolis Fed President Neel Kashkari categorized housing inflation as “the biggest elephant in the world” but he also said that he believes that the rate hike will be slow because the loan contracts are signed at lower rates.
The index for renters and owners (OER) each rose 0.2% from October to November, down from the previous month’s reading and the smallest one-month increases since July 2021 and April 2021, respectively. Ownership equivalent rent is an estimate of what a landlord would pay for the same property.
Housing away from home rose 3.2% after a slight increase of 0.4% in October.
Looking back at the back of the estate agent is a place to change the front of the house sign ·Grace Cary via Getty Images
Meanwhile, the energy index rose 0.2% monthly after stabilizing in October. Annually, the energy index was down 3.2% in November after a decrease of 4.9% last month.
The food index rose 2.4% in November last year, while food prices rose 0.4% month-on-month – indicating that it is a stable group in terms of inflation. The index for food at home rose 0.5% in November after prices rose 0.1% from September to October, while food away from home increased 0.3%.
Egg prices were well known with prices increasing 8.2% monthly after falling 6.4% in October.
Other licenses with impressive growth over the past month include entertainment, education, personal care, and clothing. In contrast, the communication process fell 1% in November after falling 0.6% in October and September, according to the BLS.
