The SPDR S&P 500 (NYSE:SPY) is moving higher Tuesday morning after the Labor Department reported a 7.1% year-over-year increase in the consumer price index for November.

What Happened: The headline CPI rose 7.1% in November, down from 7.7% in October, according to data from the U.S. Bureau of Labor Statistics.

The November CPI reading came in below average economist estimates of 7.3%.

On a month-over-month basis, CPI was up 0.1% versus average economist estimates for a 0.3% jump.

Core inflation, which excludes volatile food and energy prices, was up 6% in November, below average economist estimates for a 6.1% gain.

The Labor Department said energy prices were down 1.6% in November, while food prices climbed 0.5%.

See Also: Cramer Says Big Macro Data, Fed Meetings Obscure Real Opportunities, Wants Investors To Keep 'Eyes Open'

Why It Matters: Tuesday's highly anticipated CPI inflation reading comes just a day ahead of the Federal Reserve's final meeting of the year.

At the central bank's last meeting, Fed Chair Jerome Powell said there is still significant uncertainty around the level of interest rates that will be sufficiently restrictive to bring inflation down to its 2% goal. 

"The historical record cautions strongly against prematurely loosening policy. We will stay the course until the job is done," Powell said.

SPY Price Action: The SPY was up 2.03% at $407.05 at time of publication, according to Benzinga Pro.

Photo via Shutterstock.