The consumer price index edged up 0.1% last month after being unchanged in October, the Labor Department's Bureau of Labor Statistics said on Tuesday. In the 12 months through November, the CPI increased 3.1% after rising 3.2% in October.
Economists polled by Reuters had forecast the CPI would be unchanged on the month and gain 3.1% on a year-on-year basis.
MARKET REACTION:
STOCKS: U.S. stock index futures held a slight gain and were last up 0.04%
BONDS: U.S. Treasury yields dipped right after the data reversed, with 2-year note last at 4.716%, and the 10-year note at 4.218%FOREX: The dollar index pared a loss and was off 0.24%
COMMENTS:
BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT, MENOMONEE FALLS, WISCONSIN"Inflation is coasting towards the Fed's target, but not fast enough for the Fed to talk about rate cuts. Powell will probably say that the job isn't done yet, but we're at least closer to the end than we are to the beginning."
PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK
"The numbers are going in the right direction. Today's inflation data is not likely to change the Fed expectations of a rate hold this month or the fact that they're likely raising rates."
"I'm expecting a dovish dot plot, but the statement will be consistent; the fight against inflation has not been won and the Fed will continue to move as necessary."
"It doesn't change the fact that the market is pricing in a rate cut by June. But if these numbers continue to come down this gradually, the market could be wrong and the first interest rate cut will come later. I think it will come in the third quarter."
"Yes, inflation remains elevated. It's coming down at a snail's pace, but it's heading in the right direction."
(Compiled by the Global Finance & Markets Breaking News team)
