US inflation matches forecasts, slows to 3.1% in November

Consumer price inflation in the US slowed in November year-on-year (YoY), in line with market expectations, backed by lower energy prices, a day before the Federal Reserve announces its decision on interest rates.

Bureau of Labor Statistics figures released on Tuesday showed that consumer price inflation in the US slowed to 3.1% in November, compared to October's reading of 3.2%.

Core inflation, which excludes volatile food and energy prices, remained unchanged at 4% YoY in the November reading, while food prices rose by 2.9% and energy prices fell by 5.4% during the same period.

Monthly inflation accelerated by 0.1% in November, after stabilizing in the October reading. The increase in housing prices by 0.4% during the same period contributed to the rise in the monthly inflation rate.

Meanwhile, energy prices fell by 2.3% last month, due to a 6% drop in gasoline prices, while food prices rose by 0.2%.

The data may contribute to raising market expectations about the Federal Reserve ending its monetary tightening cycle soon, with investors widely expecting the central bank to stabilize interest rates in the monetary policy statement expected to be issued tomorrow.