The Consumer Price Index (CPI) for November increased 7.1% year-over-year versus the 7.3% expected by economists. The decline from the previous month’s 7.7% has sent the market higher as investors expect the magnitude of the interest rate hikes and the possibility of a recession to decline.
While the Fed had indicated the likelihood of smaller rate hikes beginning as soon as this month, the CPI data released today almost assures the same. So, the market might continue to rally for some time.
