Inflation pressures ease in November as consumer prices clock 2.7% annual rise

Core Inflation Data - The Consumer Price Index (CPI) rose 2.7% year-over-year in November, lower than the expected 3.1% increase [1] - On a core basis, excluding food and energy, prices increased by 2.6% year-over-year, also below the anticipated 3.1% [2] Economic Context - The November inflation data is the first reading since October's report was canceled due to a government shutdown, providing no month-on-month comparisons [2][3] - In September, both headline and core CPI measures had risen by 3% compared to the same month the previous year [3] Federal Reserve Insights - The Federal Reserve aims for a 2% inflation target, with the latest core personal consumption expenditures (PCE) index showing a 2.8% increase year-over-year [4] - Economists predict that inflation pressures may ease as demand cools, potentially allowing the Fed to maintain its current interest rates [4][5] Market Expectations - Bank of America economists suggest that goods inflation may remain persistent due to tariffs, while services inflation could soften, impacting the Fed's decision-making [5] - Current market expectations indicate a 25% chance of a rate cut by the Fed in the upcoming January meeting [5][6]