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Inflation & Prices

US Core Inflation Slows, Giving Fed Some Breathing Room on Rates

  • Key gauge rose 0.2% in November, below economists’ forecasts
  • Cooling inflation validates anticipated Fed downshift in hikes
Bloomberg business news
US Core Inflation Slows Below Estimates to 0.2% M/M
Updated on

A key gauge of US consumer prices posted the smallest monthly advance in more than a year, indicating the worst of inflation has likely passed and validating an anticipated slowing in the pace of Federal Reserve interest-rate hikes.

Excluding food and energy, the consumer price index rose 0.2% in November and was up 6% from a year earlier, according to a Labor Department report Tuesday. Economists see the gauge — known as the core CPI — as a better indicator of underlying inflation than the headline measure.