MNI BRIEF: Nov US CPI Largely In-Line; Fed On Track To Cut

MNI (WASHINGTON) - U.S. CPI inflation accelerated slightly in November but largely met Wall Street expectations, keeping the Federal Reserve on track to cutting interest rates by another quarter point later this month. Headline CPI added 0.313% and core 0.308%, bringing the 12-month rate to 2.749% and 3.319%, respectively, according to the Bureau of Labor Statistics report Wednesday. 

Headline CPI had risen 0.2% in each of the previous four months, while core has been steady at 0.3% for the past three months. Shelter prices pulled back more than expected to a 0.3% rise in November, accounting for nearly 40% of the headline increase, the BLS said. Owners' equivalent rent added 0.23% in the month, its softest uptick since January 2021. Core services excluding housing prices, or supercore CPI, rose 0.342%, slightly higher than analysts expected. 

Futures traders increased bets on a 25 bps rate cut this month following the data. (See: MNI INTERVIEW: Higher Trend Growth Means More Fed Cuts - S&P)