The Bureau of Labor Statistics has released the November US CPI data that shows an easing of inflation. US equity futures were trading in green after the November US CPI data were published. The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in November on a seasonally adjusted basis, after increasing 0.4 percent in October, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index increased 7.1 percent before seasonal adjustment.
The index for shelter was by far the largest contributor to the monthly all items increase, more than offsetting decreases in energy indexes. The food index increased 0.5 percent over the month with the food at home index also rising 0.5 percent. The energy index decreased 1.6 percent over the month as the gasoline index, the natural gas index, and the electricity index all declined.
The index for all items less food and energy rose 0.2 percent in November, after rising 0.3 percent in October. The indexes for shelter, communication, recreation, motor vehicle insurance, education, and apparel were among those that increased over the month. Indexes which declined in November include the used cars and trucks, medical care, and airline fares indexes.
The all items index increased 7.1 percent for the 12 months ending November; this was the smallest 12-month increase since the period ending December 2021. The all items less food and energy index rose 6.0 percent over the last 12 months. The energy index increased 13.1 percent for the 12 months ending November, and the food index increased 10.6 percent over the last year; all of these increases were smaller than for the period ending October.
This is how inflation in the United States changed between May and October. In the United States, the inflation rate rose 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.
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A lower inflation print will keep the US Federal Reserve on track to slow the pace of rate hikes, sending a positive signal to the market. The November inflation figures will be closely analyzed by economists, analysts, and investors to see if there has been any impact of rate hikes on price rises, especially on the core inflation.
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Now, all eyes will be on FOMC’s rate hike decision tomorrow. On November 10, the US Fed raised rates by 75bps taking the total magnitude to 375bps in 2022 so far. The markets expect Fed to hike rates by 50bps on Wednesday 14 but the post-conference commentary of Fed chief Powell will be important event to watch.