U.S. CPI in November hit the biggest increase in seven months, but it may still be difficult to prevent the Fed from cutting interest rates next week

The U.S. consumer price index recorded its biggest increase in seven months in November, but this is unlikely to prevent the Federal Reserve from cutting interest rates for the third time next week against the backdrop of a cooling job market. Data showed that the CPI rose 0.3% month-on-month last month, the biggest increase since April, after rising 0.2% for four consecutive months. The year-on-year growth rate of the CPI rose 2.7% after rising 2.6% in October. The year-on-year growth rate of inflation has slowed sharply compared with the peak of 9.1% in June 2022. Nevertheless, the progress of reducing inflation to the Fed's 2% target has effectively stalled in recent months. However, the Fed is now more focused on the labor market. Although job growth accelerated in November after being severely disrupted by strikes and hurricanes in October, the unemployment rate accelerated to 4.2% after remaining at 4.1% for two consecutive months. (Jinshi)