Inflation Takes a Breather: What It Means for Your Money

Prices went up, but not as much as experts thought they would in November. This gave investors a glimmer of hope that inflation might be slowing down. The consumer price index (CPI) showed a 2. 7% annual increase, which was lower than the predicted 3. 1%. Even when you take out the wobbly prices of food and energy, the core CPI was still cooler than expected, rising 2. 6% over the year. This was a bit of a surprise, as economists had predicted a 3% rise. This report was a bit unusual because it covered a time when the U. S. government was shut down. That shutdown messed with the usual data collection process and even led to the cancellation of the October CPI release. Because of this, the November report didn't have all the usual data points.Investors are now looking at this report to figure out what the Federal Reserve might do next. The Fed has already cut its benchmark rate three times in a row. Some experts think that if inflation keeps cooling, the Fed might cut rates again to protect jobs and the economy. Stock futures jumped after the report, and Treasury yields slipped. This shows that investors are feeling a bit more optimistic. But it's important to remember that this report might not show the whole picture because of the missing October data.