Inflation up 7.1% from year ago, Labor Department

The Consumer Price Index increased in November by 7.1%, compared to a year ago, the Labor Department reported Tuesday.

The increase from September was 0.1%, the agency also reported.

The CPI measures the average change over time in the prices consumers pay for goods.

Economists expect inflation to rise 7.3% and 0.3% , respectively.

November's numbers are down for a 7-year-high in June of an annualized 7.7% increase, and will be a key factor in the Federal Reserve’s next interest-rate hike that is expected Wednesday.

The Fed has made a series of sharp rate rate increases in recent months in an attempt to cool the economy while also trying to keep the U.S. economy from slipping into a recession.  

U.S. financial markets were posting gains Tuesday morning ahead of the CPI release, on the expectation of lower numbers and that the Fed's next rate hike, as a result, would not be so sharp.

And futures tied to the Dow Jones Industrial Average gained 644 points right after the inflation numbers hit, according to CNBC.