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CPI Report Out on Tuesday. What to Expect?

London, 11 December 2023

Investors will be analysing November's Consumer Price Index (CPI), one of the key data points the Federal Reserve will take into account when making its next interest rate decision, on Tuesday.

According to predictions from Bloomberg, the inflation data, which is scheduled for release at 8:30 a.m. ET, is anticipated to show headline inflation of 3.1%, a minor slowdown from October's 3.2% annual growth in prices. Consumer prices are predicted to stay unchanged for a second consecutive month over the previous one.

According to Bank of America, lower energy costs probably prevented the headline figures from showing a larger annual growth.

Following a 2.5% decrease in October, the bank projects a 3.5% month-over-month decline in energy costs. November saw a strong decline in petrol prices, which is what will be driving the decline.

According to Bloomberg data, prices are predicted to have increased 4.0% from the previous year in November on a "core" basis, which eliminates the more erratic costs of groceries and petrol. This is comparable to the yearly increase observed in October. Estimates for monthly core prices indicate a 0.3% increase, somewhat above October's 0.2% monthly increase.

According to US economist Michael Gapen of Bank of America, greater costs for "volatile" categories like used automobiles and hotel away from home should result in a "firmer core" following price declines in October for both of those categories.

(Source: Yahoo!Finance // Edited by The Decision Maker - Finance editors)


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