NY Fed President Williams says some 'technical factors' distorted November's CPI reading downward

Core Viewpoint - The inflation data for November was likely distorted due to technical factors, leading to a lower Consumer Price Index (CPI) reading than expected [1][2]. Group 1: Inflation Data Analysis - The consumer price index rose at a 2.7% annualized rate in November, which was below the Dow Jones economists' expectation of a 3.1% increase [3]. - The October CPI release was canceled, resulting in the November report lacking several standard data points typically included in a CPI report [3]. - The Bureau of Labor Statistics indicated that it could not collect October survey data, relying instead on "nonsurvey data sources" to construct the index [3]. Group 2: Economic Interpretation - Economists may be cautious in interpreting the November CPI report as clear evidence of a sustained downward trend in inflation due to the absence of an October comparison [4]. - John Williams noted that the data distortion could have pushed down the CPI reading by approximately a tenth of a percentage point [2].