Annual inflation cools to 3.1% – as Federal Reserve prepares for final policy announcement of the year tomorrow

The annual inflation rate fell to 3.1 percent in November, down slightly from 3.2 percent in October.

On a monthly basis, the rate rose 0.1 percent from October, according to consumer price index (CPI) data released Tuesday by the U.S. Bureau of Labor Statistics.

This came a day before the Federal Reserve’s final statement on monetary policy this year.

The central bank is expected to keep interest rates steady for the third time in a row, but investors will be looking to inflation data to see when the Fed might start cutting rates next year.

According to CME’s Fedwatch tool, markets are forecasting significant rate cuts from central banks in 2024 and see a roughly 50% chance of the Fed’s first rate cut coming as early as March.

The annual inflation rate fell to 3.1 percent in November, down slightly from 3.2 percent in October.

Stock futures rose ahead of the Labor Department’s announcement but subsequently fell sharply and were little changed before the market opened.

Economists surveyed by Dow Jones expected prices to remain unchanged through the month, with the annual rate falling to 3.1 percent.

House prices, which include rent and make up about a third of the CPI’s weight, rose 0.4 percent over the month and 6.5 percent over 12 months.

But lower energy prices have helped curb inflation.

This is sensational news. There will be updates.