Headline Roundup • December 11th, 2024
Annual Consumer Price Index at 2.7% as Inflation Stalls
Summary from the AllSides News Team
The Consumer Price Index (CPI) rose 2.7% in the 12 months since November 2023.
Key Details: According to the report from the Bureau of Labor Statistics, the annual CPI was up from 2.6% and was in line with consensus expectations. Housing prices appear to be the key component in keeping inflation elevated, even though inflation has plunged since the height of the COVID-19 pandemic. Core prices such as food and energy costs are excluded from the CPI.
Key Quote: “The CPI print confirms the market consensus of another 25 [basis point] rate cut from the Federal Reserve," Vanguard senior U.S. economist Josh Hirt said in a note.
For Context: Continuing concerns for inflation may lead the Federal Reserve to cut interest rates during its two-day policy meeting next week.
How the Media Covered it: Axios (Lean Left bias) reported that policymakers are favoring a 2% inflation rate, and the current rate of 2.7% has raised some concerns. Investor's Business Daily (Lean Right bias) reported that the S&P 500 rose solidly after the CPI report was released, as markets expect an interest rate cut by the Federal Reserve next week.
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(Andrew Harnik/Getty Images)
Inflation remained stubborn this fall, signaling a potentially bumpy road to vanquishing higher prices, which president-elect Donald Trump will have to contend with.
The consumer price index increased 2.7 percent in November from a year earlier, according to the Labor Department, hotter than a 2.6 percent rise in October although in line with what economists expected. It was also above a 2.4 percent annual rise in September.
On a monthly basis, inflation increased 0.3 percent from October to November, faster than the previous monthly rise, as prices for housing, energy and particularly...
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....
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...
