Dec 11, 2024 (Baystreet.ca via COMTEX) --
Inflation in the U.S. during November rose to an annualized rate of 2.7%, its fastest rate of expansion in seven months, but meeting the expectations of economists.
The Consumer Price Index (CPI) increased 0.3% month-over-month in November from October, according to the U.S. Bureau of Labor Statistics.
Excluding food and energy, core CPI increased 3.3% on an annual basis and 0.3% monthly. All the data was inline with the consensus expectations of economists who were surveyed by Dow Jones Newswires.
The latest inflation reading in America comes as the U.S. Federal Reserve prepares to make its next decision on interest rates Dec. 18.
Markets and economists widely expect the central bank to lower its benchmark interest rate a further 25-basis points before pausing action on rates in January.
While U.S. inflation has declined substantially from a peak above 9% in June 2022, it remains above the Fed's 2% annualized target.
Some economists and analysts have expressed frustration with inflation's resilience and have said that interest rate cuts will likely need to slow or stop altogether if more progress isn't made on taming consumer price increases.
There is also concern that the policies of president-elect Donald Trump, such as tariffs and tax cuts, will spark a rise in inflation going forward.
If the U.S. Federal Reserve cuts interest rates 25-basis points on Dec. 18, as expected, it will have taken a full percentage point off its benchmark Federal Funds Rate since September of this year.
COMTEX_460734522/2559/2024-12-11T10:12:31
