MARKET INSIGHT - U.S. CPI Data Does Not Alter Short-Term Fed Policy Outlook

Michael Brown from Pepperstone has argued that the U.S. CPI data for November, to be released today at 1630 GMT, is unlikely to significantly alter the near-term outlook for the Fed's policy. Senior research strategist Brown stated that a 25 basis point rate cut next week appears to be "locked in at this point, with labor market conditions being the primary driving factor for policy changes rather than price pressures." Economists surveyed by The Wall Street Journal expect the headline annual CPI to accelerate from 2.6% in October to 2.7% in November, while the core annual CPI is anticipated to remain unchanged at 3.3%.