**Inflation Cools More Than Expected in November, Offering Encouraging Signs for Fed Policy**
U.S. inflation eased more than expected in November, providing fresh evidence that price pressures are continuing to moderate. According to data released Thursday by the Bureau of Labor Statistics, the Consumer Price Index (CPI) rose 2.7% year-over-year—below consensus estimates of 3.1% and a decline from the 3.0% rate recorded in September.
Core CPI, which excludes the often-volatile food and energy categories and is closely monitored by the Federal Reserve, also cooled. It rose 2.6% over the past 12 months, down from 3.0% in September and well under forecasts of another 3.0% increase.
Due to data collection disruptions caused by the recent federal government shutdown, the Bureau of Labor Statistics did not release a month-over-month inflation rate for October. As a result, there is a two-month gap in tracking the sequential inflation trend.
Nonetheless, the softer reading for November supports the Federal Reserve’s view that inflation is gradually moving closer to its 2% target. This sentiment contributed to the Fed’s decision to implement an interest rate cut last week, even as inflation remains modestly above the desired level.
