Inflation accelerated in the United States in November

Stateside the rise in consumer prices accelerated the most in seven months in November.

According to the US Department of Labor, the consumer price index rose by 0.3 percent in November from October. This was the biggest monthly increase since April. The annual inflation rate was 2.7 percent in November, while it was 2.6 percent in October.

In turn, core inflation monitored by economists and the central bank was 3.3 percent in November. Core inflation was also the same in October and September.

Core inflation is an important measure, as the direct impact of sensitively changing energy and food on consumer prices has been removed from it. Core inflation tells the consumer price index better about the broad scope of inflation.

Consumer prices the rise has accelerated in the United States for two consecutive months now. Even in September, inflation seemed to be slowing down.

Acceleration of inflation may put a damper on the US central bank’s Fed’s plans to continue lowering the key interest rate in December. On the other hand, investors still seem confident that the Fed is not backing down from its intention to continue lowering the key interest rate in December.

The Fed started interest rate cuts in September by cutting its key rate by 0.50 percentage points. It was the first time since March 2020 that the central bank lowered its key interest rate.

In November, the Fed cut its key interest rate for the second time, but this time only by 0.25 percentage points. The market expects it to further cut its key rate by 0.25 percentage points in December.

Inflation acceleration was expected in the United States. Several economists predicted in advance that the rise in consumer prices would accelerate in November as well.

For this reason, the inflation figures published by the Ministry of Labor do not seem to have excited investors. The main stock indices in the United States were on the rise on Thursday.