November consumer prices rose at a 2.7% annual rate, lower than expected, delayed data shows
Economists polled by Dow Jones expected CPI to have risen 3.1% on an annualized basis.
TL;DR
- Consumer Price Index (CPI) rose 2.7% annually in November, below the expected 3.1%.
- Core CPI, excluding food and energy, increased 2.6% over 12 months, also below the expected 3%.
- Monthly CPI gains for both all-items and core were 0.2%, under the 0.3% estimate.
- The report's data collection was affected by a U.S. government shutdown, leading to the cancellation of the October CPI release.
- Shelter costs rose 3% year-over-year, showing progress towards the Fed's 2% inflation goal.
- Investors are interpreting the report as a signal for future Federal Reserve monetary policy actions, with increased odds of a March rate cut.
- Stock futures rose, and Treasury yields slipped following the CPI data release.