Inflation in the US fell more sharply in November than originally expected. Consumer prices rose just 7.1 percent a month, according to the US Department of Labor. Core inflation fell to 6.0 percent from 6.3 percent.
The high inflation in the USA weakened more than expected in November. Compared to the same month last year, consumer prices rose by 7.1 percent, as the Department of Labor announced on Tuesday in Washington. Analysts had expected an average inflation rate of 7.3 percent, after 7.7 percent in the previous month. It is the fifth consecutive drop in inflation.
Core inflation – excluding volatile energy and food prices – fell to 6.0 percent from 6.3 percent. Here, too, the decline was stronger than expected.
The US dollar fell across the board after the numbers. US Treasury yields also came under pressure. Because the weakening of inflation is likely to strengthen the US Federal Reserve in its intention to raise key interest rates less significantly than recently. The next interest rate decision is due this Wednesday.