US annual inflation slows further below 3% in November

  • U.S. inflation slowed below 3% in November, potentially leading to an interest rate cut in March
  • The PCE price index increased 2.6% in the 12 months through November
  • The core PCE price index rose 3.2% year-on-year in November, the smallest rise since April 2021
  • Financial markets are pricing a 72% chance of a rate cut at the Fed’s March meeting
  • Consumer spending increased 0.2% in November
  • Upbeat data suggests the economy is regaining speed, with GDP growth estimates as high as 2.7% for this quarter