Consumer prices rose less than expected in November, the second-straight month inflation pressures moderated more than anticipated by economists.
The Consumer Price Index (CPI) for November showed a 7.1% increase in prices over last year and a 0.1% increase over the prior month, the Bureau of Labor Statistics said Tuesday. Economists had expected prices to rise at a 7.3% clip over last year and 0.3% month-over-month, per Bloomberg data.
On a “core” basis, which strips out the volatile food and energy components of the report, prices climbed 6.0% year-over-year and 0.2% over the prior month. Consensus estimates called for a 6.1% annual increase and 0.3% monthly rise in the core CPI reading.
The report propelled U.S. stocks forward and sent Treasury yields lower as Wall Street weighed the implication of softer prints on Federal Reserve policy.
While November’s figures showed a modest deceleration in inflation, the costs of essential items and housing facing U.S. consumers still remain stubbornly high and well above the Federal Reserve’s long-term price stability target of 2%.
To read the full story from Alexandra Semenova in Yahoo Finance, click here.