US Inflation Eases to 2.7% in November, Strengthening Rate-Cut Bets
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US inflation cooled more than expected in November, offering fresh evidence that price pressures are continuing to ease. The Consumer Price Index rose 2.7% from a year earlier, down from recent readings and the lowest annual pace since 2021. Economists had expected a 2.8% increase. On a monthly basis, consumer prices also showed a modest gain, reinforcing the view that inflation is gradually moving closer to the Federal Reserve’s target.
Core CPI, which strips out food and energy costs, increased 3.3% year over year, slightly below forecasts. The softer reading suggests underlying inflation is also moderating, even as some categories remain sticky. The report arrives at a critical moment for markets, which have been closely watching for signs that the Fed may have room to begin cutting interest rates in 2025.
Investors responded positively to the data, with stock futures moving higher as expectations for policy easing strengthened. While the Fed has emphasized that it wants more evidence inflation is firmly under control, November’s report adds to the case that price growth is slowing without a major deterioration in the broader economy. For households and businesses, the latest figures may signal a more stable inflation environment heading into the new year.
