Pound to Dollar Rate Six-month High on U.S. CPI Inflation Fall
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The Federal Reserve will feel justified in slowing down the pace it raises interest rates after U.S. inflation roundly underwhelmed expectations in November.
The Dollar fell and stocks rose on a second consecutive inflation reading that signalled price rises were cooling and that the Fed can afford to ease back on interest rate hikes, allowing investors to spy a halt on the horizon.
Headline CPI inflation grew 7.1% in the year to November said the BLS, which represents a sizeable decline from October’s 7.7% and is well below the consensus expectation for 7.7%.
Inflation rose 0.1% in the month to November, slower than the 0.3% expected and October’s reading of 0.4%.
Core inflation, which is arguably more important to the Federal Reserve’s reckonings, also undershot at 6.0% year-on-year, a deceleration on October’s 6.3% and below expectations for 6.1%. The month-on-month increase in core was set at 0.2%, below…
