U.S. November CPI up 2.7% ↑…Below market expectations

The United States' November consumer price index (CPI) rise came in below market expectations.

The U.S. Bureau of Labor Statistics (BLS) under the U.S. Department of Labor said on the 18th (local time) that last month's CPI rose 2.7% year-on-year. This was 0.4% percentage points below experts' expectations (3.1%).

Core CPI, which excludes volatile food and energy, rose 2.6% from a year earlier. This figure was 0.4% percentage points below experts' expectations (3.0%). Energy and food CPI rose 4.2% and 2.6% year-on-year, respectively.

Because inflation rose less than expected and employment slowed at the same time, the likelihood of future rate cuts increased. Earlier, data released on the 16th showed U.S. nonfarm payroll employment increased by 64,000 last month. This is a sharp decline compared with the September increase (119,000).

The unemployment rate also rose to 4.6% from 4.4% in September, marking the highest level since the COVID-19 pandemic and reflecting a weakened U.S. labor market.

Meanwhile, the BLS did not publish the monthly rate in its announcement because it was unable to collect October price data due to the recent U.S. federal government shutdown. It determined that it was impossible to collect price data retroactively, so October CPI statistics were not compiled.