Inflation Increases Possibly Complicating The Fed’s Next Rate Decision

The data marked two consecutive months of rising inflation, reversing some of the progress made in lowering inflation earlier this year.

Consumer prices increased in November potentially complicating the Federal Reserve’s next rate decision.

Inflation rose 2.7% last month compared to a year ago and up from the previous month.

The data marked two consecutive months of rising inflation, reversing some of the progress made in lowering inflation earlier this year.

Overall, inflation has slowed dramatically from a peak of over 9% in June of 2022, but price increases remain slightly above the target rate of 2%.

In recent months, the Fed has cut its benchmark rate three quarters of a percentage point. However, the recent increase in inflation makes up the last piece of economic data before the agency makes a decision.

The next interest rate decision is set to be made next Wednesday.