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US inflation was found to have fallen more sharply than expected in November, with headline and core CPI respectively coming in well below market forecasts, based on official data.
The 2.7% CPI reading and 2.6% core CPI reading reinforced the view that price pressures are easing, although inflation remains above the Federal Reserve's target.
The report was the first reading since September, following the cancellation of the October report due to the government shutdown, thus limiting short-term comparisons.
Economists expect price pressures to continue to ease as consumer demand cools, although tariffs continue to keep goods inflation high.
The mixed inflation data is expected to prompt the Fed to maintain a cautious stance, with the probability of a rate cut in January remaining low.
