Slower than expected rise in US CPI adds to the case for a sooner, lower terminal rate

The US CPI data is here ICYMI:

• US November CPI +7.1% y/y vs +7.3% expected

And the responses have begun to filter in:

• Timiraos: Fed on track for 50 bps tomorrow but lower inflation could complicate 5% target

This snippet via BMO:

• slower than expected increases in consumer prices on both headline and core measures
• another month of slowing inflation data adds to the case for a sooner arrival at a lower terminal rate
• had we seen an upside surprise in the inflation data, the case could have been made for a 5.5% or higher terminal projection, but CPI bolsters the case for the increase in terminal forecasts to be more measured

---

https://images.forexlive.com/images/US%20CPI%20monthly_id_0a52ce96-dca9-4f67-ae6f-e844636da6ff_size775.jpg