U.S. inflation might have declined in November, but it still requires Fed’s actions

This Tuesday, at 8:30 a.m. Eastern Time, updated information on the U.S. Consumer Price Index (CPI) for November is expected to be released.

According to a survey of economists conducted by Bloomberg, it’s projected that the index will reflect a 0.3% headline price increase compared to October and a 7.3% increase in comparison with 2021. It should be noted that inflation growth in October was 0.4% over the month before and 7.7% over the prior year.

As forecasted by specialists, core CPI, which doesn’t take into account food and energy, would be at 0.3% on a monthly basis and at 6.1% on a yearly basis. The estimated figures are only slightly different from the October readings of the index of 0.3% and 6.3%, respectively.

Meanwhile, economists at Bank of America warn that economic problems still remain, despite some decline in headline inflation that might have been caused by a decrease in oil prices. As it was stated by the experts, a possible decrease of inflation may be just the result of holiday discounting and lower prices for used car. At the same time, one of the CPI major components — shelter inflation — would remain at its current levels, according to the economists’ opinion.

Bank of America’s representatives additionally underlined that, despite the expected continuation of goods inflation declining, shelter inflation and core services inflation wouldn’t undergo significant changes any time soon.