12/12/2023

Rising Rent Costs Lift U.S. Inflation in November

The increase was unexpected

U.S. consumer prices unexpectedly rose in November as a decline in the cost of gasoline was offset by increases in rents, offering more evidence that the Federal Reserve was unlikely to pivot to interest rate cuts early next year.

The report from the Labor Department on Tuesday also showed prices for used cars and trucks rebounded last month after five straight monthly decreases, helping to boost underlying inflation. Americans also paid more for healthcare and motor vehicle insurance.

The slightly firmer inflation readings followed in the wake of data last Friday showing job gains accelerated in November and the unemployment rate fell to 3.7 percent from nearly a two-year high of 3.9 percent in October. Officials from the U.S. central bank were due to gather for a two-day policy meeting on Tuesday.

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