US inflation likely cooled again last month as Fed prepares to assess interest rates
This year’s steady slowdown in U.S. inflation likely continued in November, though the latest data may also point to sharply higher prices in some areas of the economy
WASHINGTON (AP) — This year's steady slowdown in U.S. inflation likely continued in November, though the latest data may also point to steadily higher prices in some areas of the economy.
Tuesday's inflation report from the Labor Department is expected to show that businesses kept overall prices unchanged for a second straight month.
Falling gas prices, in particular, are thought to have offset a rise in food costs from October to November. And compared with a year earlier, inflation is expected to ease to 3.1% from 3.2% in October, according to a survey of economists by FactSet.
But a closely watched category called “core prices,” which excludes volatile food and energy costs, is predicted to rise 0.3% from October to November — a monthly pace that far outpaces the Federal Reserve's 2% annual inflation target. On a year-over-year basis, core prices are expected to increase 4%, the same as in October.
