November inflation report likely to show prices cooled last month
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A closely watched inflation report due Tuesday is expected to show that price pressures within the economy continued to ease last month.
Economists expect the consumer price index, which measures a range of goods that includes gasoline, health care, groceries and rent, to show that monthly prices rose 3% in November, just below the 3.2% increase recorded the previous month.
On a monthly basis, inflation is seen coming in flat – the same as in October – thanks to a steep drop in gasoline prices.
«Americans continue to feel the shock of the post-pandemic inflation surge which weighs on both sentiment and purchasing power,» said Mark Hamrick, senior economic analyst at Bankrate. «But the forthcoming consumer price index data should align with recent improving price trends, fueled in part by last month’s big drop in gasoline prices.»
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Other parts of the report are expected to point to a slower retreat in inflation. Core prices, which exclude the more volatile measurements of food and energy, are expected to climb 0.3%, or 4.1% annually. Those figures are little changed from October, suggesting that underlying price pressures remain strong.
The Federal Reserve's target rate is 2%.
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The central bank is closely watching the report for evidence that inflation is finally subsiding as policymakers try to cool the economy with a series of aggressive interest rate hikes. Officials have approved 11 rate increases since March 2022, lifting the benchmark
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