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US inflation data strengthens case for federal reserve rate cut in December
(MENAFN) With US inflation figures aligning with market expectations, the likelihood of a 25-basis-point rate cut at the Federal Reserve’s next meeting has grown stronger.
Annual headline inflation rose slightly to 2.7 percent in November from 2.6 percent in October, while core inflation, which excludes volatile food and energy prices, remained unchanged at 3.3 percent. On a monthly basis, both headline and core inflation increased by 0.3 percent, matching analyst forecasts.
In an interview with Anadolu, Ryan Sweet, chief US economist at Oxford Economics, pointed out the resilience of consumers despite persistent inflationary pressures, particularly in discretionary spending sectors such as motor vehicles, hotel lodging, and airfares.
While inflation in more persistent categories like shelter has shown signs of easing, reinforcing the ongoing disinflationary trend, Sweet emphasized that inflation is unlikely to surge again in the near future, despite concerns of potential future waves.
Sweet, who predicts the Federal Reserve will cut rates in December, expects the central bank to adopt a more cautious approach as 2024 progresses.
Annual headline inflation rose slightly to 2.7 percent in November from 2.6 percent in October, while core inflation, which excludes volatile food and energy prices, remained unchanged at 3.3 percent. On a monthly basis, both headline and core inflation increased by 0.3 percent, matching analyst forecasts.
In an interview with Anadolu, Ryan Sweet, chief US economist at Oxford Economics, pointed out the resilience of consumers despite persistent inflationary pressures, particularly in discretionary spending sectors such as motor vehicles, hotel lodging, and airfares.
While inflation in more persistent categories like shelter has shown signs of easing, reinforcing the ongoing disinflationary trend, Sweet emphasized that inflation is unlikely to surge again in the near future, despite concerns of potential future waves.
Sweet, who predicts the Federal Reserve will cut rates in December, expects the central bank to adopt a more cautious approach as 2024 progresses.
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