Monthly Inflation Softens in the US, but YoY CPI Jumps Higher

The US inflation report for November was released just a while ago. This is the last decent round of economic data before the FED meeting later this evening, so it holds some importance regarding the FED decision. Although, there wasn’t much change, apart from the YoY number, which has a story behind it. Below are the CPI and core CPI figures from the US for November:

Year-over -year inflation figures

  • US November CPI +2.1% YoY vs +2.0% expected
  • October CPI stood at 1.8% y/y
  • Core YoY CPI excluding food and energy 2.3% vs 2.3% expected
  • Prior core CPI ex food and energy stood at 2.3%
  • Energy alone came in at -0.6% YoY

Month-over-month data:

  • November MoM CPI +0.3% vs +0.2% expected
  • October stood at +0.4%
  • Core CPI for November remained unchanged at +0.2% vs +0.2% expected
  • Shelter at +0.3% MoM vs +0.1% previously

The average hourly earnings report

  • Real hourly wages at 0.0% MoM
  • Wages at +1.1% YoY

So, the monthly inflation cooled off a little, but YoY CPI jumped higher to 2.3% from 1.8% in October. This is a decent jump, but the next three months of data in this series are going to be hot because of soft YoY figures from Nov-Jan a year ago. An inflation scare would dent the Fed’s credibility. The risk is that they shift back to a hawkish bias, something that would be a major blow to risk assets.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments