US November CPI data due Wednesday, December 11 – expected to be higher than in October

In October 2024, the U.S. Consumer Price Index (CPI) increased by 0.2% from the previous month, marking the fourth consecutive month with this rate of growth. On an annual basis, the CPI rose by 2.6%, up from 2.4% in September.

The core CPI, which excludes volatile food and energy prices, also saw a 0.3% month-over-month increase, consistent with the prior two months, resulting in a 3.3% year-over-year rise.

• Shelter costs were a significant contributor

• Energy prices remained unchanged

• Food prices experienced a 0.2% increase in October

The inflation figures were in line with economists’ expectations and suggested to analysts that that the Federal Reserve may continue its current monetary policy trajectory. The Fed has been gradually reducing interest rates to stimulate economic growth, with markets anticipating a potential rate cut in December. However, persistent inflation in certain sectors, such as shelter and transportation services, indicates that the Fed may proceed cautiously with future rate adjustments.

Indeed, the November data due at 8.30 am US Eastern time today (Wednesday, December 11, 2024) are expected to show a tick higher for the headline rate, while the core is expected to remain sticky at 3.3%.

This via the Wall Street Journal:

This article was written by Eamonn Sheridan at www.forexlive.com.