Prices rose less than expected in November, the latest sign that runaway inflation that has been gripping the economy is beginning to loosen up.
The consumer price index, which measures a wide basket of goods and services, rose just 0.1% from the previous month, and increased 7.1% from a year ago, the Labor Department reported Tuesday. Economists surveyed by Dow Jones had been expecting a 0.3% monthly increase and a 7.3% 12-month rate.
Excluding volatile food and energy prices, so-called core CPI rose 0.2% on the month and 6% on an annual basis, compared to respective estimates of 0.3% and 6.1%.
Stocks roared higher following the report, with futures tied to the Dow Jones Industrial Average up more than 800 points.
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