Why November’s CPI data are seen as a ‘game-changer’ for financial markets

November’s softer-than-expected consumer-price index is being described by traders and financial-market analysts as a “game-changer” that demonstrates inflation is swiftly easing, reducing the likelihood Federal Reserve policy makers will push interest rates above 5% in 2023. Strength was seen across asset classes on Tuesday, after the CPI data showed the cost of living rose a scant 0.1% on a monthly basis in November. Stocks and bonds rallied, along with gold and oil prices, while the Cboe Volatility Index VIX of equity-market volatility fell and the ICE U.S. Dollar Index DXY traded at an almost six-month low. Stocks…

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