The U.S. consumer price inflation rate decreased in November, moving one step closer to the Federal Reserve’s target (2%). The photo shows a consumer shopping at a Target store in Upper St. Clair, Pennsylvania. / Associated Press
The U.S. Department of Labor announced on the 12th (local time) that the U.S. Consumer Price Index (CPI) rose 3.1% in November compared to the same month last year. This price increase is lower than last September (3.7%) and October (3.2%). This result is in line with the expectations of market experts. As the Federal Open Market Committee (FOMC), the Federal Reserve’s interest rate decision meeting to be held on the 13th, solidifies the possibility of freezing policy rates, the outlook for an interest rate cut in the first half of next year is expected to gain strength.
Looking at last month’s US CPI by item, energy prices were 5.4% lower than a year ago. However, housing costs rose 6.5%. The core inflation rate, excluding highly volatile food and energy, was 4.0%, the same as in October.
Although this inflation rate is still higher than the Fed’s target of 2%, it is accepted as evidence that it is cruising toward 2%. In particular, as statistics on the recent slowdown in the job market continue to emerge, the outlook is growing that the Federal Reserve will make its first interest rate cut as early as May next year.
A year later, Americans’ expectations about prices have fallen to their lowest level in more than two years. According to the November Consumer Outlook Survey conducted by the Federal Reserve Bank of New York on 1,300 U.S. households on the 11th (local time), the expected inflation (median value) of those surveyed one year from now was 3.4%, which will be expected after April 2021. It came out the lowest. It fell for two consecutive months after falling from 3.7% in September to 3.6% in October. Americans expected prices of most goods and services, including housing rent, college tuition, gasoline, and food, to fall next year. The inflation rate after 3 and 5 years was expected to be 3% and 2.7%, respectively.
2023-12-12 13:51:10
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