United States: Inflation Continues to Cool

The US Consumer Price Index (CPI) increased just 0.1% in November after rising 0.4% in both September and October. The index for all items less food and energy was up 0.2%, the smallest monthly advance since August 2021. It follows gains of 0.3% in October and 0.6% in September and August. The 12‑month change in the all items index continued to move lower, posting its smallest increase this year. It was up 7.1% in November, down from 7.7% in October. The 12‑month change in the all items less food and energy index also slowed, from 6.3% to 6.0%. Inflation is letting up in the United States. In November, it was two percentage points below its June peak. But while things are moving in the right direction, it’s probably too soon for the Fed to end its monetary tightening campaign. It could start slowing the pace of rate hikes as early as tomorrow’s meeting, however.