Inflation rose 2.7% on an annual basis in November, according to the latest government report on the Consumer Price Index, or CPI.
Last month’s CPI was forecast to come in at 2.7%, according to economists surveyed by financial data firm FactSet. The Consumer Price Index, a basket of goods and services typically bought by consumers, tracks the change in those prices over time.
The Federal Reserve has been battling high inflation since 2022, when it began ratcheting up its benchmark rate in order to dampen demand from consumers and businesses. That’s helped lower the inflation rate to its current level from a recent peak of 9.1% in June 2022, yet the last leg of the Fed’s journey to push inflation down to a 2% annual rate is proving elusive.
That stalling may complicate the Fed’s current rate-cutting path. In September, the central bank issued its first cut in four years, followed by a second reduction in November, citing progress on inflation and weakness in the job market.
“Since the Fed first cut rates in September, this inflationary number has stalled in its descent toward its stated 2% goal,” said Jay Woods, chief global strategist at Freedom Capital Markets, in an email before the November CPI report.
While a majority of economists still forecast the Fed will again cut rates at its next meeting, set for Dec. 18, some forecasters are now expecting fewer cuts in 2025.
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
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