US Inflation Eases to 2.7% in November, Strengthening Rate-Cut Bets
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US consumer prices rose 2.7% in November from a year earlier, cooling from recent readings and coming in slightly below economists’ expectations of 2.8%, according to the latest inflation data. The result marks the lowest annual increase since 2021 and adds to signs that price pressures are gradually easing across the economy.
The report also showed core CPI, which excludes food and energy, rising 3.3% year over year. While still above the Federal Reserve’s 2% target, the core measure suggests underlying inflation remains sticky even as headline price growth moderates. Investors interpreted the data as supportive of a more accommodative policy path in 2025, with markets increasingly anticipating rate cuts if disinflation continues.
Financial markets reacted quickly to the softer-than-expected reading. Stock futures moved higher in after-hours trading as traders weighed the prospect of lower borrowing costs and a less restrictive Fed stance next year. The report may help reinforce expectations that policymakers will have more room to ease policy if inflation continues trending downward without a sharp deterioration in the labor market.
