Inflation Slowed To 2.7% Last Month—Below Expectations

Group 1 - The Consumer Price Index (CPI) rose 2.7% in November year-over-year, slower than the previous increase of 3% and below economists' expectations of a 3.1% rise [1] - Core CPI, which excludes food and energy prices, increased by 2.6% over the same period, also below the previous pace of 3.1% [1] Group 2 - The release of the CPI data was delayed due to a government shutdown, which affected data collection and led to the cancellation of the October CPI report [2] - There are concerns among economists regarding the accuracy of the CPI report due to the disruptions caused by the government shutdown [2] Group 3 - Capital Economics noted that while the data might indicate a genuine reduction in inflationary pressures, the sudden change, especially in persistent service components like rent, is unusual outside of a recession [3] - The firm emphasized the need to wait for the December data to determine if the current figures represent a statistical anomaly or a true disinflation trend [3]