US inflation fell in November 2023. Toy giant Hasbro is cutting almost 20 percent of its jobs

US inflation has continued to weaken. Consumer prices rose 3.1 percent in November compared to the same month last year, the US Department of Labor announced in Washington on Tuesday. In October, prices rose by 3.2 percent.

The decline is no surprise: economists expected this on average. Lower energy prices helped inflation fall compared to the same month last year, said Thomas Gitzel, chief economist at VP Bank. “Moreover, it is pleasing that the increase in rental prices continues to slow down. Nevertheless, housing costs remain the main driver of inflation compared to the same month last year.”

Core inflation remained at 4.0 percent in November. The core interest rate receives special attention from the US Federal Reserve Bank. According to experts, it reflects general price developments better than the overall tariff, because components that are sensitive to fluctuations such as energy and food are excluded. Prices rose by 0.1 percent month-on-month. Analysts had expected stagnation.

Figures that are important to the US Federal Reserve

The figures are important for the monetary policy of the US Federal Reserve, which recently stopped raising its key interest rates. The interest rate will probably be reconfirmed this Wednesday. Experts expect interest rate cuts next year.

“No new insights can be derived from today’s figures,” said Gitzel. Commerzbank economists Bernd Weidensteiner and Christoph Balz explained: “Even if inflation continues to exceed the Fed’s target, it is moving largely in the direction the Fed wants.” However, market expectations about upcoming rate cuts are likely going too far for the Fed. “It is therefore expected that Fed Chairman Powell will try to temper speculation about interest rate cuts at the press conference after tomorrow’s meeting.”

Reactions on the financial markets remained low. The euro initially gained ground against the US dollar. However, the dollar quickly recovered and the euro fell below the level it was at before the data was released. The stock markets hardly reacted to the figures. Yields on US government bonds rose slightly.

(saw/awp/sda)