U.S. Inflation Data Shows Slower Growth in November, Markets React Positively
In November, the U.S. Consumer Price Index (CPI) rose by 2.7% year over year, which was below the forecasted 3.1% and slightly above the previous figure of 3.0%. The core CPI, which excludes food and energy prices, increased by 2.6% year over year, also falling short of the anticipated 3.0%.
The release of these inflation figures was delayed for October due to a government shutdown that impacted the Bureau of Labor Statistics' ability to report data.
Following the inflation data release, Bitcoin’s price surged above $88,000, having traded intraday near $86,817.46 earlier. The Nasdaq-100 futures rose by approximately 1.15%, while the 10-year Treasury yield dropped by 2 basis points to 4.12%.
According to CME FedWatch data, there is a 73% probability that the Federal Reserve will maintain interest rates at the January meeting. The softer-than-expected inflation print suggests potential support for continued Federal Reserve rate cuts in the coming year.
