Jin Shi Shu Ju·2025-12-19 12:56Core Insights - The November inflation data in the U.S. showed a significant drop in both CPI and core CPI, with year-on-year rates falling to 2.7% and 2.6% respectively, which were below market expectations of around 3% [3][8] - Despite concerns about data quality due to government shutdowns affecting data collection, the report provided a glimmer of hope for the market, alleviating short-term inflation worries [7][3] - The Federal Reserve may reconsider its interest rate decisions if the December data continues to show low inflation, potentially leading to more rate cuts than previously indicated [7][10] Inflation Data Summary - The CPI for November was reported at 2.7%, down from 3.0% in October, with a month-on-month increase of 0.3% [8] - Core CPI decreased to 2.6%, down from 3.0% in October, with a month-on-month increase of 0.2% [8] - Food inflation remained high at 2.6% year-on-year, while energy inflation increased to 4.2% [8] - Core inflation showed weakness, particularly in housing and services, with housing inflation dropping from 3.6% to 3.0% [10][8] Market Reaction - Following the inflation report, the market reacted positively, with the dollar weakening and both stocks and bonds rising, particularly the Nasdaq which gained over 1% [3] - The report's findings may influence the Federal Reserve's stance, as lower inflation could lead to a more dovish approach in future monetary policy [7][3]