Inflation has fallen dramatically but remains above the Fed’s target rate.
by Max Zahn
ABC News
Consumer prices rose 2.7% in November compared to a year ago, ticking upward from the previous month and potentially giving pause to the Federal Reserve as it weighs an interest rate cut expected next week. The reading matched economists’ expectations.
The fresh data marked two consecutive months of rising inflation, extending a bout of accelerated price increases that has reversed some of the progress made in lowering inflation earlier in the year.
The inflation gauge makes up the last piece of significant economic data before the Fed announces its next interest rate decision on Dec. 18.
Core inflation — a closely watched measure that strips out volatile food and energy prices — increased 3.3% over the year ending in November, matching the previous month, the data showed.