The US Department of Labor has recently revealed the latest data, according to which the CPI (consumer price index) dropped 0,3% in November 2014 relative to the previous reporting period, Market Leader reports.
The mentioned decline is a pretty big one. Actually, this is the biggest monthly fall since December 2008. On top of that, the decline happen to be greater than expected since the experts interviewed by Bloomberg had expected the index to drop only 0,1%.
The annual dynamics of the consumer price growth in the USA reach 1.3% over the same reporting period, which in turn means that the figures are currently at their lowest point since February 2014 while the experts had anticipated a 1.4%.
Meanwhile, the Core CPI (excluding energy and food prices) gained only 0.1% in November 2014 relative to the previous month. The year-to-year performance reached 1.7%. As for the expert predictions, they were equal to 0.1% and 1.8% respectively.
It is believed that the recent slowdown was mainly caused by lower energy prices, especially the share price collapse in the global market offered oil. Apparently, these caused a decline in gasoline prices. In particular, the average price of gasoline in the USA dropped by 6.6% last month. It should be noted that this is the biggest monthly drop since December 2008.
The inflation rate in the USA is still stable around record lows, which gives the Fed an opportunity to delay to first interest rate hike in many years. At this point, the key interest rate is around zero, which is the lowest point since 2008.
Meanwhile, Masterforex-V academy reports that that the US Dollar keeps on sowing its strength against other majors - a basket of 6 major currencies comprising the USD index. In particular, the experts say that the price has come lose to a major pivot - 89,97. According to the Online Training Department of Masterforex-V Academy, if the price succeeds in breaking above the mentioned pivot, this will give way to another strong level of resistance, which is located at 92,53.
