Consumer prices rose less than expected in November, the second-straight month inflation pressures moderated more than anticipated by economists. The Consumer Price Index (CPI) for November showed a 7.1% increase in prices over last year and a 0.1% increase over the prior month, the Bureau of Labor Statistics said Tuesday. Economists had expected prices to rise at a 7.3% clip over last year and 0.3% month-over-month, per Bloomberg data.
While Americans still faced higher costs for rental housing, economists expected a moderation next year. The report was published as officials at the U.S. central bank gathered for their final two-day policy meeting of the year. The Fed, in the midst of its fastest rate-hiking cycle since the 1980s, is expected to lift its benchmark overnight interest rate by 50 basis points Wednesday, snapping a string of four straight 75-basis-point increases. Economists still expected the Fed to maintain its monetary policy tightening campaign at least through the first quarter of 2023.