US Inflation and UK Wages Ease, Boosting Rate Cut Hopes
-
US inflation eased to 3.1% in November, down from 3.2% in October and meeting forecasts. Core inflation remained at 4%.
-
Energy prices fell 5.4% over the last year, while food prices rose 2.9%. Gasoline dropped 6% in November.
-
The data comes ahead of the Fed's interest rate decision. Markets expect no change but hope for signs of future cuts.
-
UK wage growth slowed more than expected, with private sector pay growth dropping to 2.8% recently. It suggests inflation pressures may be easing.
-
UK gilt yields tumbled on hopes for future rate cuts, with 10-year bond yields down over 11 basis points. Markets are betting on cuts in 2024.