US Inflation Eases To 3 Percent, Strengthening Rate-Cut Expectations

The latest US Consumer Price Index confirmed headline inflation at 3 percent and core at 2.7 percent, both lowest since May 2024. The data eased concerns of persistent price pressures and supported market expectations for a Federal Reserve rate cut in December. Treasury yields retreated while equity futures rose modestly following the release. Economists viewed the report as evidence that disinflation is broadening across goods and services. However, they cautioned that labor costs and housing inflation remain sticky, requiring policy patience before confirming a decisive pivot toward monetary easing.