Inflation Cools More Than Expected in November as CPI, Core Undershoot Forecasts 

U.S. inflation eased more than anticipated in November, offering fresh confirmation that price pressures continue to moderate. The Consumer Price Index rose 2.7% year over year, below the 3.1% consensus estimate and down from 3.0% in September, according to data released Thursday by the Bureau of Labor Statistics. 

Core CPI—which strips out the more volatile food and energy categories and is closely watched by the Federal Reserve—also cooled, rising 2.6% from a year earlier. That compares with expectations of 3.0% and marks a deceleration from 3.0% in September. 

Given the BLS canceled the October report due to data-collection disruptions caused by the government shutdown, no month-over-month inflation rate was released, leaving a two-month gap in the sequential trend. 

Still, November’s softer readings add momentum to the Fed’s view that inflation is gradually moving closer to its 2% target. That view helped persuade policymakers to deliver a rate cut last week, even as inflation remains moderately above goal.