Fueled by pricier used cars, hotel rooms, and auto insurance, inflation in the United States moved slightly higher last month while remaining far below its peak of two years ago, the Associated Press reports.
Consumer prices rose 2.7% in November from a year earlier, up from a yearly figure of 2.6% in October. Excluding volatile food and energy costs, so-called “core” prices increased 3.3%, the same as in the previous month.
From October to November, consumer prices climbed 0.3%, the biggest monthly increase since April. Core prices also rose 0.3% for a fourth straight month.
Today’s inflation figures from the Labor Department are the final major piece of data that Federal Reserve officials will consider before they meet next week to decide on interest rates. The relatively mild increase won’t likely be enough to discourage the officials from cutting their key rate by a quarter point, as most economists and Wall Street traders expect.
When the Fed’s meeting ends, it will not only announce its interest rate decision. The policymakers will also issue their latest quarterly projections for the economy and interest rates. In September, they projected four rate cuts for 2025. The officials will likely scale back that figure next week.
