US CPI Data Release Time: The November US CPI data will be released today by the Bureau of Labor Statistics. Stock market investors will want to know how much annual inflation has fallen in November. A lower inflation print will keep US Fed on its track to slow down the pace of rate hikes and will be a positive signal to the market. However, if inflation numbers remain sticky, around 7.7% as seen in October, the markets may react negatively.

In such a case, Fed would be expected to remain aggressive in taming inflation thus impacting the economy at large. Still, the Fed Pivot could be a few quarters away, as central bank chairman Powell has already indicated a higher terminal rate than markets expected.

Latest Update: US CPI eases to 7.1%, stock market reacts positively

For the month of November 2022, the CPI data is to be released on December 13, 2022, at 8:30 A.M. Eastern Time. The November inflation figures will be closely watched by economists, analysts, and investors to see if there has been any impact of rate hikes on price rises. On November 10, the US Fed raised rates by 75bps taking the total magnitude to 375bps in 2022 so far. Tomorrow, US Fed’s FOMC rate hike decision will take place.

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This is how US inflation changed between May and October 2022. The US inflation rate increased from 8.6% in May to 9.1% in June, then fell to 8.5% in July, 8.3% in August 2022, and finally 8.2% in September 2022 before falling to 7.7% in October.

The US Federal Reserve is adamant about keeping inflation under 2%, primarily by raising borrowing costs and discouraging job creation. The impact of rate hikes on the economy is understandably delayed. Still, the core-inflation data will be crucial to look at before concluding any meaningful decline in the inflation numbers.

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The rate of GDP growth in the third quarter increased, and the labour market appears to be doing well, leaving little room for the Fed to rejoice. What is becoming clear is that the terminal rate may breach 5% levels if inflation remains sticky and shows no signs of abating from here on out. Inflation has been seen to fall in the last 2-3 months, but a larger reduction in the annual rate of price rise could be pivotal, which the markets may be anticipating.