November CPI: Inflation Momentum Cools, But Data Gaps Complicate The Read
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MTS Insights771 FollowersFollow5ShareSavePlay(12min)Comment(1)SummaryNovember CPI data shows a sharp deceleration in both headline and core inflation, with core CPI falling to 2.6% YoY, its lowest since March 2021.Disinflation was broad-based, led by food and shelter, but significant data gaps from the government shutdown introduce uncertainty about the true trend.Market reactions were muted relative to the downside inflation surprise, reflecting skepticism about the reliability of the incomplete dataset.Policymakers and markets are likely to wait for the full December CPI report before making decisive moves, setting up potential volatility. Liubomyr Vorona/iStock via Getty Images After months of concern that inflation pressures were proving stubborn, this November CPI release forces a rethink of the near-term narrative. The report points to a broad cooling in underlying price momentum, with the most persistentThis article was written byMTS Insights771 FollowersFollowI cover global macro data releases and events; ETFs representing sectors, industries, and asset classes; and earnings reports. For more analysis, visit my website or follow me on X.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.