Inflation report: Prices remain elevated, Americans keep spending

"The Federal Reserve's preferred inflation gauge ticked up in November in the latest sign that prices remain stubbornly elevated, while consumers spent at a healthy pace. Consumer prices rose 2.8% in November from a year earlier, the Commerce Department said Thursday, up from a 2.7% annual pace in October. Excluding the volatile food and energy categories, core prices also increased 2.8% in November from a year ago, slightly higher than October's 2.7%."

"Consumer spending climbed 0.5% in November from the previous month, the report also showed, a solid increase that hits at an economy growing at a healthy pace in the final three months of last year. The figures point to a mostly strong economy with inflation still elevated, but down sharply from a four-decade peak in June 2022. Hiring has slowed to a crawl, however, leaving job-seekers frustrated even as the unemployment rate stays low."

The Fed's preferred inflation gauge rose in November, with headline CPI up 2.8% year-over-year and core CPI also up 2.8%. Monthly CPI and core CPI increased 0.2% from October. Consumer spending climbed 0.5% in November, supporting a healthy pace of economic growth entering the fourth quarter. Inflation remains elevated but has fallen sharply from its June 2022 peak. Hiring has slowed considerably even as the unemployment rate stays low. The November data make an immediate Federal Reserve interest-rate cut less likely and follow a 4.4% annualized expansion in the July-September quarter.

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