US inflation in November came in as economists had previously expected.
The new inflation figures from the US are the last important numbers before the US central bank holds its interest rate meeting on Wednesday.
Core inflationCore inflationPrice growth excluding energy products and tax changes.The inflation figure, which is the most important when the Fed takes interest rates into account, came in at 4 percent for November.
It’s price growth unchanged since October, and exactly what economists expected in advance, according to Bloomberg estimates.
General increase in Inflation in the consumer price indexInflation in the consumer price indexPrice increases are measured by an increase in the Consumer Price Index (CPI). The 3.1 percent increase in November represents only a slight decrease compared to the 3.2 percent price increase in October.
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-You shouldn’t be too hard on yourself in this job
– It was very close to expectations for everything here. What kept inflation high was rent. The bank is not giving up, says Harald Magnus Andresen, chief economist at Sparebank 1 Markets to E24.
High wage growth
The Fed is widely expected in the market to choose to keep its key interest rate unchanged when it meets on Wednesday.
The US interest rate level has remained stagnant since July at a range of 5.25-5.50 percent, the highest interest rate level in 22 years.
Andreessen believes core inflation has not actually fallen since this summer.
This is one of the Fed’s problems. The second is that wage indexes are now exploding, but it is not clear whether wage growth has fallen enough, the chief economist says.
Expect the interest rate not to change
The market expects there to be a 98.4 percent probability that the interest rate level will remain in the 5.25-5.50 range when the interest rate meeting ends on Wednesday, according to market expectations. CME FedWatch– the tool.
With interest rates widely expected to remain calm, there is more excitement about the signals the Federal Reserve and central bank Governor Jerome Powell will provide on Wednesday.
The market is pricing in between four and five interest rate cuts in 2024, the chief economist says.
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199,000 new jobs were created outside the agricultural sector in November
– The Fed will not live up to expectations for a rapid series of interest rate cuts next year. Andreasen says their interest rate path will at best include two hikes, and perhaps just one.
At the November interest rate meeting, Powell expressed that economic activity in the United States remains stronger than expected.
In previous months, several key figures came in stronger than expected, including labor market figures – all despite repeated hikes in interest rates.
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