US inflation holding steady

US CPI dipped slightly in November to 3.1% annually, just below October's 3.2% pace. The core rate held steady at 4%. On a monthly basis, prices rose 0.1%, marginally above flat expectations. There were no major surprises across categories. Food and energy price hikes moderated while shelter costs remained high. The 'super core' services inflation measure increased monthly and annually, signalling some lingering pricing pressures. For the Federal Reserve, this report likely does not significantly sway the policy outlook. Officials have consistently stated inflation will be bumpy as it declines. Some cooling in certain areas paired with persistent inflation in others confirms that uneven path. So, while not raising hike expectations, the data reinforces rates will still need to stay elevated for some time to tame inflationary pressures. Markets initially dropped but later rebounded on the figures, indicating they also see the data as keeping the Fed on course.