US inflation eases to 7.1% in November as key Fed meeting begins

By Ovunc Kutlu

ISTANBUL (AA) – Annual consumer inflation in the US came in at 7.1% in November, easing from the 7.7% in October, according to official figures released on Tuesday.

The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, came in lower than the market estimate of an 7.3% annual increase.

The figure has been the smallest 12-month increase since the period ending December 2021, while it is a sharp decline from a 9.1% yearly gain in June, which had been the largest 12-month increase since November 1981.

On a monthly basis, the CPI in November rose 0.1% from the previous month, again coming below the market expectation of a 0.3% gain. The CPI in October showed a monthly gain of 0.4%.

"The food index increased 0.5 percent over the month with the food at home index also rising 0.5 percent," the Labor Department said in a statement.

"The energy index decreased 1.6 percent over the month as the gasoline index, the natural gas index, and the electricity index all declined," it added.

Core CPI, which excludes food and energy, gained 0.2% in November from the previous month, again below the market expectation for a 0.3% rise. In October, core CPI also posted a monthly increase of 0.3%.

Annually, core CPI rose 6% in November, also coming below the market estimate of a 6.1% gain, while it rose 6.3% in October year-on-year.

"The energy index increased 13.1 percent for the 12 months ending November, and the food index increased 10.6 percent over the last year; all of these increases were smaller than for the period ending October," the statement said.

The inflation data came on the day when the US Federal Reserve kicked off its key two-day monetary policy meeting. The central bank will announce its interest rate decision on Wednesday at 2 p.m. EDT (1900GMT), in which it is expected to make a rate hike of 50 basis points.

The Fed has raised its benchmark interest rate by a total of 375 basis points, or 3.75%, since March to bring record inflation under control.