Analysis: The U.S. November CPI saw the largest increase in seven months, but it is unlikely to prevent the Federal Reserve from cutting interest rates next week

ChainCatcher news, according to Jinshi reports, the U.S. Consumer Price Index (CPI) in November recorded the largest increase in seven months, but against the backdrop of a cooling job market, this is unlikely to prevent the Federal Reserve from cutting interest rates for the third time next week. Data shows that last month the CPI rose by 0.3% month-on-month, the largest increase since April, after the index had risen by 0.2% for four consecutive months. The year-on-year growth rate of the CPI increased by 2.7% after rising by 2.6% in October. Compared to the peak of 9.1% in June 2022, the year-on-year growth rate of inflation has significantly slowed down.

Nevertheless, the process of bringing the inflation rate down to the Federal Reserve's 2% target has effectively stalled in recent months. However, the Federal Reserve is now more focused on the labor market. Although job growth accelerated in November after being severely disrupted by strikes and hurricanes in October, the unemployment rate rose to 4.2% after remaining at 4.1% for two consecutive months.