CPI Report Today: Stock Indexes Rise After Inflation Data Boosts Rate-Cut Hopes

U.S. stocks rose after new inflation data bolstered expectations the Federal Reserve will cut interest rates next week.

Prices rose 2.7% in the 12 months through November, the consumer-price index showed. That was right in line with consensus expectations, and up from a 2.6% rate as of October.

Core prices, which exclude volatile food and energy costs, were up 3.3%, also matching forecasts, the report from the U.S. Bureau of Labor Statistics showed.

While price pressures remain somewhat elevated, investors have grown more confident in recent weeks that central bankers will continue to lower rates.

On Wednesday morning, futures prices showed investors now view a Fed cut of a quarter-percentage point later this month as a near-certainty.