Inflation as measured by the Consumer Price Index cooled considerably in November and is at its lowest level in almost a year.
Prices rose 7.1% annually in November, down from 7.7% in October, according to the Bureau of Labor Statistics’ closely watched index, which measures the change in prices paid by consumers for goods and services.
November’s rate, which was the fifth-straight monthly decline, landed below economists’ expectations of 7.3% and was the lowest since December 2021.
On a month-to-month basis, prices rose by 0.1% last month, as compared to October’s reading of 0.4%.
Core CPI, which excludes the volatile food and energy categories, measured 6% for the year ended in November, down from the 6.3% rate in October. On a monthly basis, core CPI increased by 0.2%.
The report comes just a few hours before Federal Reserve officials prepare to sit down and pore over key economic data that will help inform their decision on further monetary policy tightening. The Fed has raised interest rates at each of its past six meetings — including an unprecedented streak of four three-quarter-point hikes — to help knock down the highest inflation since the early 1980s.
Economists expect the Fed at this meeting to approve a half-point hike.
This story is developing and will be updated.