2025.12.1813:51:08UTC+00DXY Falls as Inflation Cools

The dollar index slipped to 98.3 in response to the latest U.S. inflation report, which indicated a moderation in price pressures for November. The Core Consumer Price Index (CPI) rose by 2.6% year-over-year, marking the slowest increase since early 2021, and down from 3% two months prior. Meanwhile, the headline CPI saw a 2.7% rise. This data provided some alleviation following months of persistent inflation, slightly weakening the dollar by reinforcing the belief that price pressures are diminishing. However, the report was accompanied by significant caveats due to the federal government shutdown, which hindered the Bureau of Labor Statistics (BLS) from collecting October price data and evaluating month-over-month changes. Despite these signals of easing inflation, uncertainties persist regarding the Federal Reserve's interest rate trajectory. Policymakers remain divided after a third consecutive rate cut, and Fed Chair Powell cautioned that the CPI figures might be skewed by the shutdown.