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US CPI increased less than expected

In the US, the Consumer Price Index (CPI) rose less than expected by 0.1 percent month on month and 7.1 percent year on year in November.

In the US, the Consumer Price Index (CPI) rose less than expected by 0.1 percent month on month and 7.1 percent year on year in November.

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The US Department of Labor released inflation data for November.

Accordingly, the cost of living of American consumers increased by 0.1 percent in November compared to the previous month.

Market expectations were for the CPI to increase by 0.3 percent monthly in this period. CPI increased by 0.4 percent on a monthly basis in October.

The CPI in the country increased by 7.1 percent on an annual basis in November, remaining below the expectations of 7.3 percent. Annual inflation, which slowed more than expected and fell to its lowest level since December 2021, was 7.7 percent in October.

 

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In the said period, the increase in housing prices was the item that made the biggest contribution to the rise in consumer prices. The housing index increased by 0.6 percent monthly and 7.1 percent annually in November.

While the increase in food prices slowed down compared to the previous months, the index for the said item increased by 0.5 percent monthly and 10.6 percent annually in November.

While the energy index decreased by 1.6 percent monthly in November, it increased by 13.1 percent annually. Gasoline prices under the energy item also increased by 10.1 percent annually against a monthly decrease of 2 percent in November.

Core CPI, which does not include variable energy and food prices, was also below market expectations, with a monthly increase of 0.2 percent and an annual increase of 6 percent.

In the said period, market expectations for core inflation were to increase by 0.3 percent monthly and 6.1 percent annually. Core CPI increased by 0.3 percent monthly and 6.3 percent annually in October.

Analysts stated that the slowdown in inflation in November, above the forecasts, shows that the “worst” in inflation is probably behind and raises expectations for the US Federal Reserve (Fed) to slow down in the rate of interest rate hikes.

 

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