Inflation Falls To 2.7%, Much Lower Than Expected

Inflation eased significantly in November, indicating that consumers are seeing relief from anxieties about affordability.

The consumer price index, the best-known measure of U.S. inflation, rose 2.7 percent last month from a year earlier, the Department of Labor said Thursday. The November report was delayed by the federal government shutdown, which stretched from the start of October through mid-November.

Economists had forecast a rise of 3.1 percent.

The government was unable to collect some data during the shutdown, leaving gaps in the long-running price series. The government did not release a full set of inflation figures for October, making month-to-month comparisons unavailable. Compared with September, prices are up 0.2 percent.

Core CPI, which strips out volatile food and energy prices, is up 2.6 percent from a year ago. That compares with forecasts of a three percent increase. Over the two months since September, prices rose 0.2 percent.

In the hours before the CPI report was released, stocks futures implied the major index would open in positive territory Thursday.