Inflation rose slightly in November, but likely not enough to derail the Federal Reserve's plans for further interest rate cuts, according to figures released Wednesday by the Labor Department.
Consumer prices rose 0.3% in November and rose 2.7% over the past 12 months, according to new Consumer Price Index (CPI) data released on Wednesday. Monthly and annual inflation each rose 0.1 percentage point from October levels, in line with economists' consensus expectations.
The Labor Department said home and food price increases drove much of the increase in November, with a 0.3% increase in home prices driving 40% of the rise in inflation.
Even if inflation rises slightly, the Fed is unlikely to stop cutting rates at its final monetary policy meeting of the year. The Federal Open Market Committee (FOMC), the group of Fed officials responsible for setting interest rates, will meet on December 17-18 and is expected to end with a 0.25 percentage point cut.
A Fed rate cut is still expected, but a strong November jobs report and an improvement in consumer confidence could give the Fed reason to postpone future rate cuts.
But the central bank is expected to keep its options open as markets wary about the impact of President-elect Donald Trump's economic policies, including high tariffs and plans to expel millions of immigrants from the United States.
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