The U.S. inflation rate rose 7.1% in November from a year ago, which was less than the 7.3% annualized increase economists had expected.
Stocks in America rocketed higher on the lower-than-expected inflation reading, with the Dow Jones Industrial Average leaping 700 points.
The 10-year Treasury yield fell below 3.50% on the latest indication that inflation is beginning to decline in the U.S.
The Consumer Price Index (CPI), which measures a basket of goods and services in the economy, rose 0.1% in November from October, and increased 7.1% from a year ago, the U.S. Labor Department reported.
Economists surveyed by Dow Jones Newswires had forecast a 0.3% monthly increase and a 7.3% annualized gain for November inflation.
Core inflation, which excludes volatile food and energy prices, rose 0.2% on a monthly basis and 6% on an annualized basis.
The Dow Jones Industrial Average gained 800 points immediately following the inflation report being announced, but has since moderated.
