WASHINGTON — 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.
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.
Wednesday’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.
The Fed slashed its benchmark rate, which affects many consumer and business loans, by a sizable half-point in September and by a quarter-point in November. Those cuts lowered the central bank’s key rate to 4.6%, down from a four-decade high of 5.3%.
Though inflation is now way below its peak of 9.1% in June 2022, average prices are still about 20% higher than they were three years ago — a major source of public discontent that helped drive President-elect Donald Trump’s victory over Vice President Kamala Harris in November. Still, most economists expect inflation to decline further next year toward the Fed’s 2% target.
This is a breaking news story. Please check back for updates.
