Inflation rose 2.7% on an annual basis in November, according to the government’s latest report on the Consumer Price Index, or CPI.
Last month’s CPI was expected 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 purchased by consumers, tracks changes in these prices over time.
The Federal Reserve has grappled with high inflation since 2022, when it began raising its benchmark rate in an effort to dampen consumer and business demand. This has helped lower the inflation rate to its current level after a recent high of 9.1% in June 2022, but the final step in the Fed’s journey to return inflation to an annual rate of 2% proves elusive.
This blockage could complicate the Fed’s current rate reduction path. In September, the central bank announced its first cut in four years, followed by a second cut in November, citing rising inflation and a weak labor market.
“Since the Fed first cut rates in September, this inflationary number has stagnated in its descent toward its stated goal of 2%,” said Jay Woods, chief global strategist at Freedom Capital Markets, in an e -email preceding the November CPI report.
While a majority of economists still predict the Fed will cut rates again at its next meeting, scheduled for Dec. 18, some forecasters now expect fewer cuts in 2025.
—This is breaking news and will be updated.
