U.S. inflation ticked down again last month, with cheaper gas helping further lighten the weight of consumer price increases in the United States, according to a report from the Associated Press.
At the same time, the latest data on consumer inflation showed that prices in some areas — services such as rents, restaurants, and auto insurance — continued to rise uncomfortably fast.
Tuesday’s report from the Labor Department said the consumer price index rose just 0.1% from October to November. Compared with a year earlier, prices were up 3.1% in November, down from a 3.2% year-over-year rise in October.
But core prices, which exclude volatile food and energy costs, rose 0.3% from October to November, slightly faster than the 0.2% increase the previous month. Measured from a year ago, core prices rose 4%, the same as in October. The Federal Reserve considers core prices to be a better guide to the future path of inflation.
The mixed picture in Tuesday’s inflation report will likely keep the Fed on track to leave its benchmark interest rate unchanged when its latest meeting ends Wednesday. Inflation still exceeds the Fed’s 2% annual target, which is why its officials are set to leave rates high. But with inflation cooling faster than expected, the Fed’s policymakers likely see no cause to further raise rates, at least for now.
Even if the central bank is done raising rates, it’s expected to keep its benchmark rate at a peak for at least several more months.
