Inflation Cools Off Unexpectedly

Inflation slowed more than expected in November, and the markets seem pretty happy about it. The key numbers:

• Main number: Consumer prices rose at a 2.7% annualized rate in November, down from 3% in September. Economists polled by the Wall Street Journal expected the figure to tick up to 3.1%. (October's reading was canceled because of the government shutdown.)
• Core number: The closely watched gauge of core inflation, which excludes volatile categories such as food and energy costs, rose 2.6%, below expectations of 3%, per CNBC.

• Caveat: The lack of October data may make economists less certain about making firm assessments about the direction of the economy. Ahead of the report's release, former Fed economist Alan Detmiester warned it would be a "very poor reflection of reality," per the New York Times. Fed chief Jerome Powell also said it should be seen with a "skeptical eye."
• Markets: The stock market, however, seemed pleased in the short term. Dow futures rose more than 200 points, about 0.5%, and the S&P 500 and tech-centric NASDAQ showed even greater gains by percentage.