The Consumer Price Index ended November at 7.1%, slightly below expectations, according to the Bureau of Labor Statistics. However, it still represents a slight 0.1% increase compared to October. The data represents a continued drop in the year-over-year growth rate, which was six tenths of a percentage point less than in the previous month (7.7%).
Economists were forecasting these figures to be a 7.3% increase over November 2021 and a 0.3% rise over October. Now, all eyes are on how the Federal Reserve will react, as it is expected to undertake another, albeit milder, interest rate hike tomorrow in its all-out war against inflation.
Diesel 65.7% more expensive than in 2021
In monthly terms, data shows a 1.6% drop in energy prices (oil, gas and electricity), compared with a rise (0.5) in food prices. The price of housing also went up and, according to the Bureau of Labor Statistics, is mainly responsible for the overall increase. Core inflation (excluding food and energy), rose 0.2% from October, the smallest rise since August 2021, and a 6% increase since this time last year.
Comparing prices from November 2021, energy costs have risen by 13.1%, food by 10.6% and housing by 14.2%. However, the biggest increase was diesel, which has increased 65.7% in the last 12 months.
Markets celebrate data
Following the announcement, major U.S. stock markets rose, as investors believed that inflation will continue to decline. The Dow Jones Industrial Index gained 545 points (1.6%), immediately after the CPI numbers were released. The S&P 500 went up 2.3%, while the Nasdaq rose 3.2%.
