December 11, 2024 – 7:21 AM PST
WASHINGTON (Reuters) – U.S. consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Federal Reserve from delivering a third consecutive interest rate cut next week against the backdrop of a cooling labor market and rental costs.
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Most of the rise in inflation reported by the Labor Department on Wednesday came from higher food prices as well as more expensive motel and hotel rooms. Rents, which have been the major driver of inflation, increased at the slowest pace since July 2021. That bodes well for the inflation outlook.
“The data have given the Fed the ‘all clear’ for next week, and today’s inflation data keep a January cut in…
