US Consumer Price Index rises; inflation still hovers at a dangerous level

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US Consumer Price Index rises; inflation still hovers at a dangerous level

On Tuesday, the US Labour Department data had unveiled that US inflation continued to rise in November despite a marginal decline in costs of gasoline alongside healthcare products, reflecting towards an ominous outlook ahead.

Nevertheless, November Consumer Price Index (CPI) data had offered a sigh of relief for market participants, as inflation rose less than anticipated which might just prod the US Federal Reserve to slow down its aggressive rate-hike path.

Aside from that, other data from the US Labour Department released earlier in the day had unveiled that the American consumers’ spending kept surging last month, as a wide array of businesses ranging from blue-whale corporates to small-scale restaurants appeared to be pushing their additional expenses down to end consumers while scalping a large chunk of American households’ saving.

US CPI continues to rise in November

According to data from US Labour Department, US CPI rose by 0.1 per cent in November following a 0.4 per cent advancement a month earlier, while prices of basic goods like of food climbed by as much as 0.5 per cent.

On top of that, prices of food products consumed at home jumped by 0.5 per cent, as a latest trend of an increase in prices of fruits, vegetables, cereals and non-alcoholic beverages sustained. However, gasoline prices dropped by 0.2 per cent.

Besides, addressing to market optimism that a bruising uptick in price pressures might be allaying, a senior economist at FHN Financial in New York, Will Compernolle said, “The broad improvements raise hopes price pressures are easing and the Fed will not have to tighten as much next spring.

But it is still not quite the 'compelling' inflation improvement (Fed Chair Jerome) Powell needs to be convinced the Fed can pause soon”.