Analysis: U.S. November CPI records largest increase in seven months, but unlikely to prevent Federal Reserve rate cut next week

According to ChainCatcher, the U.S. Consumer Price Index (CPI) in November recorded the largest increase in seven months, but against the backdrop of a cooling job market, this is unlikely to prevent the Federal Reserve from cutting interest rates for the third time next week. Data showed that the CPI rose 0.3% month-on-month last month, the largest increase since April, after the index had risen 0.2% for four consecutive months. The year-on-year growth rate of the CPI rose by 2.7% after increasing by 2.6% in October. Compared to the peak of 9.1% in June 2022, the year-on-year growth rate of inflation has significantly slowed.

Nevertheless, in recent months, the process of reducing the inflation rate to the Federal Reserve's 2% target has effectively stalled. However, the Federal Reserve is now more focused on the labor market. Although job growth accelerated in November after being severely disrupted by strikes and hurricanes in October, the unemployment rate accelerated to 4.2% after remaining at 4.1% for two consecutive months.