Investing.com — US consumer prices increased slightly on an annualized basis in November, but the in line figure has largely cemented expectations for another interest rate cut by the Federal Reserve next week.
The Labor Department’s (CPI) rose by 2.7% last month, as expected, accelerating slightly from 2.6% in October.
Month-on-month, the climbed to 0.3%, again as expected, above the 0.2% the prior month.
Stripping out more volatile items like food and fuel, the “core” climbed by 3.3% in the twelve months to July, a;lso in line with expectations, while on a monthly basis, underlying inched up to 0.3%, unchanged from October.
The has cut interest rates by 75 basis points since September, and markets were widely expecting another 25-bps cut at the December 17-18 meeting.
In their latest quarterly projections, released in September, members of the rate-setting Federal Open Market Committee held a median view of the central bank’s benchmark rate ending 2025 at 3.4%, or 125 bps of cuts from current levels.
“While some key sources of inflationary pressure, such as an overheated labor market, continue to dissipate,new headwinds to disinflation have emerged (e.g., the…
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