US annual inflation falls to 2.7% in November, below expectations

Annual inflation rate in the US was 2.7% in November, below market estimates and down from 3% in September, according to official data released Thursday.

The markets had expected the annual rate to edge up to 3.1% in November.

According to data from the Bureau of Labor Statistics, the monthly inflation rate was 0.2% in November, down from 0.3% in September. In October, the inflation data was not released due to the federal government shutdown.

Food prices in the US rose by 2.6% in November on a yearly basis, slowing from September, while increase in energy prices accelerated, up 4.2%.

Core consumer price index (CPI), which strips out volatile food and energy prices, was also cooler than anticipated, increasing 2.6% over 12 months. It was expected to have increased by 3%.

Compared to September, shelter prices rose 0.2%, food prices increased 0.1% over the two-month period, and energy prices rose 1.1% in November.

This is the first report that encompasses the period during which the US government was shut down. The shutdown disrupted the data collection process in that time.

It also led to the cancellation of the October CPI release. This data was originally expected to be released on Dec. 10.