DXY Falls as Inflation Cools

2025-12-18 13:51 By Agna Gabriel 1 min. read

The dollar index edged down to 98.3 after US inflation data showed price pressures easing in November.

Core CPI rose 2.6% YoY, the slowest pace since early 2021 and down from 3% two months earlier, while headline CPI increased 2.7%.

The report offered some relief after months of sticky inflation, weighing slightly on the dollar as it reinforced expectations that price pressures are cooling.

However, the data came with major caveats due to the federal government shutdown, which limited the BLS’s ability to collect October prices and assess month-over-month changes.

Despite signs of easing inflation, uncertainty remains over the Fed’s rate path, with policymakers divided after a third consecutive rate cut and Chair Powell warning the CPI figures may be distorted by the shutdown.



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