The U.S. Bureau of Labor Statistics has reported a 12-month inflation rate of 2.7% for November, with a monthly increase of 0.3%. This marks a slight rise from the previous annual rate of 2.6% recorded in October.
On a monthly basis, the all-items inflation rate saw an increase to 0.3% in November, following four consecutive months at 0.2%. The shelter index rose by 0.3%, contributing significantly to the overall monthly inflation figure.
Food prices increased by 0.4% over the month, while energy prices saw a smaller rise of 0.2%. Annually, food prices have risen by 2.4%, whereas energy prices have decreased by 3.2% compared to November last year.
Core inflation, which excludes food and energy costs due to their volatility, also rose by 0.3% in November, consistent with increases observed over the past three months. Significant monthly rises were noted in shelter (+4.7%), used cars and trucks (+2%), household furnishings and operations (+0.6%), medical care (+0.3%), and new vehicles (0.6%).
The communication index was one of the few major indexes that declined, falling by 1% in November after declines in October and September as well.
Over the past year, excluding food and energy costs, there was a rise of 3.3%. Key areas with notable increases included shelter (+4.7%), motor vehicle insurance (+12.7%), medical care (+3.1%), education (+4.2%), and recreation (+1.5%).
This latest inflation report aligns with economists' expectations and led to an uptick in stock market activity during morning trading hours on Wednesday.
According to CME Group’s FedWatch tool, there is now a projected probability of 96% that the Federal Reserve Board will approve at least a quarter-point interest rate cut at its upcoming meeting next week.
