Meanwhile, core inflation, which excludes the more volatile food and energy prices, remained steady at 4%.

CBI forecasts no Bank of England rate cuts until at least 2026

Shelter costs continued to be the largest contributor to core inflation throughout the month, and saw prices increase 0.4% in November.

Used cars and trucks saw prices spike 1.6% in November, breaking a five month decline streak, while medical care and motor vehicle insurance prices also rose.

Energy prices continued to be a key detractor, dropping 2.3% throughout the month, while gasoline dropped 6%.

Other sectors that saw prices decline included apparel, household furnishings and operations, communication and recreation.

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Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, noted the inflation figures were expected to be slightly higher due to residual seasonality and new source data that was incorporated in the health insurance calculation.

She added that owner-occupied rent was an important indicator this month, noting a “big reversion” from the upside miss last month, to a “meaningful deceleration in shelter”.

“This should solidify the Fed on hold in December,” she said, as the central bank’s Federal Open Market Committee prepares to meet tomorrow (13 December).

John Leiper, CIO of Titan Asset Management, said the 4% figure for core inflation was “not the best news” but will still do little “to derail the prevailing narrative that peak rates are in”.

He added: “With predictions for a soft economic landing in the ascendancy, US equity futures are responding positively to the news.”