On Monday, August 19, 2024, a box of large white eggs sold for $6.49 for a dozen at the Save Mart in Fresno, California.
Fernanda Garland | Fresno Bee | Tribune News Service | Getty Images
Consumer price increases accelerated in November, a reminder that inflation remains a problem for households and policymakers.
The U.S. Bureau of Labor Statistics reported Wednesday that the consumer price index showed 12-month inflation at 2.7%, up 0.3% for the month.
Excluding food and energy costs, the core Consumer Price Index (CPI) increased by 3.3% on an annual basis and by 0.3% on a monthly basis.
All numbers are in line with Dow Jones consensus estimates.
The data comes as Fed officials are considering the content of next week’s policy meeting. Markets strongly expect the Fed to cut its benchmark short-term borrowing rate by 0.25 percentage points at the end of the meeting on December 18, but then skip January. They measure the impact of successive interest rate cuts on the economy.
Although inflation is well below its 40-year high in mid-2022, it is still above the Fed’s 2% annual target. In recent days, some policymakers have expressed frustration with the resilience of inflation and said the pace of rate cuts may need to slow if more progress is not made.
If the Fed continues to cut interest rates next week, the federal funds rate will be lowered by a full percentage point since September.
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