CPI Report: Core Inflation Sticky But Fed Rate Cut A Virtual Lock; S&P 500 Rises

Consumer price index data showed that progress lowering core inflation remained stuck in November, but the details were less concerning than the headline numbers. The S&P 500 rose solidly after the CPI release, as markets priced in nearly 100% odds of a Federal Reserve rate cut next week.

Still, stubbornly high inflation and a buoyant S&P 500 may lead Fed policymakers to signal fewer-than-expected rate cuts in 2025 next week, when they update quarterly projections.

The overall CPI rose 0.3%, lifting the 12-month headline inflation rate to 2.7%, as expected. The core CPI also climbed 0.3% for a fourth-straight month, in line with forecasts. That kept the 12-month core inflation rate at 3.3%, matching estimates.