U.S. Inflation Climbs in November as Price Pressures Persist
The U.S. inflation rate ticked up in November, with prices increasing 0.4% from October to November and 5.6% over the past year. The Labor Department’s Consumer Price Index (CPI) report showed that grocery prices jumped 1.3% last month, with beef prices soaring 3.1% and egg prices rising 8.2%. Gas prices also edged up 0.6%, while hotel prices leapt 3.2%.
Fed Officials Weigh Inflation Outlook
Federal Reserve officials have made it clear that they expect inflation to fluctuate along a bumpy path as it gradually cools toward their target level. Several policymakers emphasized in recent speeches that with inflation having already fallen significantly, it’s no longer necessary to keep the benchmark rate quite as high.
Tariffs Threaten Fed’s Efforts
One possible threat to the Fed’s efforts to keep inflation down is President Trump’s threat to impose widespread tariffs on U.S. imports. Economists warn that such a move would likely send inflation higher, with Goldman Sachs forecasting core inflation to reach 2.7% by the end of 2025 if tariffs are imposed.
Fed Meeting Outcome
The Federal Reserve’s meeting will conclude on Wednesday, with policymakers announcing their interest rate decision and issuing updated quarterly projections for the economy and interest rates. Officials are likely to scale back their previous forecast of four rate cuts in 2025.
Key Statistics:
- CPI increased 0.4% from October to November
- Grocery prices jumped 1.3% last month
- Beef prices soared 3.1%
- Egg prices rose 8.2%
- Gas prices edged up 0.6%
- Hotel prices leapt 3.2%
What’s Next?
As the Federal Reserve meeting concludes, investors will be watching closely for any changes to the interest rate outlook and updated projections for the economy. The outcome of this meeting will have significant implications for U.S. economic policy and its impact on inflation and growth.
