US CPI slows down in November

Annual US inflation eased to 3.1% in November, down from 3.2% in October.

By Nadia Elbilassy | @Nadia Elbilassy | 12 December 2023

Market close
  • The breaking news triggered a drop in Brent crude to $74.65 per barrel, while WTI hovered around $69.96 per barrel.

  • Federal Open Market Committee (FOMC) expected to maintain rates between 5.25% to 5.50%.

  • CPI monthly underlying price gains accelerated slightly to 0.3%, aligning with projections.

On the Market Watch!

US CPI

The annual inflation growth in US slowed to 3.1% in November, compared to 3.2% in October, whilst the core figure, excluding volatile items such as food and energy, increased by 4.0% annually, consistent with the previous month. On a monthly basis, the underlying price gains registered a pace of 0.3%, slightly faster than the 0.2% observed in October. These figures aligned with expectations.

FOMC

The Federal Open Market Committee is expected to maintain rates within the existing range of 5.25% to 5.50% on Wednesday. The spotlight is likely to be on the Fed's outlook for the economy, inflation, and the anticipated number of cuts in the coming year.

Especially after the inflation rate slowed slightly in November, likely to influence the potential trajectory of interest rates in 2024.

Oil prices

Oil prices were muted today as investors awaited critical decisions on interest rates and CPI figures.

After the breaking news prices were quick to edge lower with Brent crude dropping to $75.30 per barrel, while U.S. West Texas Intermediate (WTI) crude hovered near $70.77 per barrel.

Despite OPEC+'s pledge to cut output by 2.2 million barrels per day in the first quarter of 2024, the announcement was priced in the market as an underwhelming amount and triggering quite the sell-off in oil markets. Prices seemed to have started rebounding since the start of the week ahead of central bank decisions.