Consumer Inflation Rises At Faster Annual Pace Of 2.7% In November, But Stays In Line With Estimates: Retail Worried By Stubborn Numbers
According to the U.S. Bureau of Labor Statistics, the 12-month inflation rate stood at 2.7%, after rising 2.6% over the 12 months ending October.
FollowConsumer price inflation in November rose at a faster annual pace, raising more questions on how the Federal Reserve’s December policy might pan out.
According to the U.S. Bureau of Labor Statistics, the 12-month inflation rate stood at 2.7%, after rising 2.6% over the 12 months ending October. The consumer price index showed that inflation increased 0.3% on a seasonally adjusted basis in November, after rising 0.2% in each of the previous four months.
Core inflation, excluding food and energy prices, rose 0.3% in November, as it did in each of the previous three months. BLS noted that indexes that increased include shelter, used cars and trucks, household furnishings and operations, medical care, new vehicles, and recreation.
The index for shelter, accounting for nearly forty percent of the monthly all items increase, rose 0.3%. The food index rose 0.4% while the energy index rose 0.2% over the month, after being unchanged in October.
The index for communication was among the few major indexes that decreased over the month.
Meanwhile, core CPI rose 3.3% over the last 12 months. The energy index decreased 3.2% for the 12 months ending November while the food index rose 2.4% over the last year.
Notably, all figures stood in line with estimates following which the benchmark index futures witnessed a spike.
Although inflation remains high, it has failed to dampen expectations surrounding a rate cut in the upcoming policy.
According to the CME FedWatch Tool, the probability of a 25 basis points rate cut in the December policy meet has risen to nearly 98% compared to 89% a day ago.
On Wednesday morning, the SPDR S&P 500 ETF Trust (SPY) was trading 0.4% higher while the Invesco QQQ Trust, Series 1 (QQQ) was up over 0.5%. On Stocktwits, retail sentiment ranged from ‘neutral’ to ‘bullish’ for these ETFs.
SPY’s Sentiment Meter and Message Volume as of 9:07 a.m. ET on Dec. 11, 2024 | Source: Stocktwits
QQQ’s Sentiment Meter and Message Volume as of 9:07 a.m. ET on Dec. 11, 2024 | Source: Stocktwits
Some users did express concerns over the stubborn inflation that still trends over the Fed’s 2% goal.
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