US November CPI 2.7% y/y vs 3.1% expected

The US November Consumer Price Index (CPI) rose by 2.7% year-on-year, falling short of the expected 3.1%. The previous month's CPI was at 3.0%. Core CPI came in at 2.6%, also below expectations of 3.0%, with the prior value also being 3.0%. This marks the lowest core CPI since March 2021. Core goods increased by 1.4%, while Owner's Equivalent Rent (OER) showed a rise of 3.4% year-on-year, down from 3.8% previously. The report is being met with skepticism due to issues in data collection, notably impacting the October CPI estimates. UBS highlighted that if these assumptions were removed, the inflation rate would actually align closer to 3.0%. Initially, there was a dip in USD/JPY, but it quickly rebounded. This announcement has the potential for short-term market volatility but unlikely to shift long-term trends.