The Federal Reserve’s preferred inflation gauge ticked up in November in the latest sign that prices remain stubbornly elevated as consumers spend at a healthy pace.
Consumer prices rose 2.8% in November from a year earlier, the Commerce Department said Thursday, up from a 2.7% annual pace in October. Excluding the volatile food and energy categories, core prices also increased 2.8% in November from a year ago, slightly higher than October’s 2.7%.
Consumer spending climbed 0.5% in November from the previous month, the report also shows, a solid increase that hits at an economy that grew at a healthy pace in the final three months of last year.
The figures point to a mostly strong economy with inflation still elevated, but down sharply from a four-decade peak in June 2022. Hiring has slowed to a crawl, however, leaving job seekers frustrated even as the unemployment rate stays low. Thursday’s figures suggest that the Federal Reserve will be less likely to reduce its key interest rate when it meets next week, a tact typically used if it is worried about a stumbling economy.
