MNI BRIEF: US Nov CPI Cooled To Below-Expected 2.7%

U.S. headline and core CPI both rose 0.2% over the two months from September to November, and are up a below-expected 2.74% and 2.63%, respectively, in the 12 months ended November, the Bureau of Labor Statistics said Thursday. Analysts had expected the annual rates for headline and core CPI to be 3.1% and 3.0%.

The weaker-than-expected inflation data would support further interest rate cuts by the Federal Reserve next year if the labor market continues to soften. (See: MNI: Fed Biased To Ease With Focus On Jobs - Ex-Officials) 

Core services inflation fell to 3.0% from 3.5% in September, driving the moderation, while core goods cooled to 1.4% from 1.5%, according to an MNI calculation. Owners' equivalent rent fell to 3.4% from 3.8% in September. 

BLS did not collect survey data for October due to the federal government shutdown. It used nonsurvey data sources, which were available for October, to make the index calculations for some categories, BLS said.