US inflation rose slightly in November but came in lower
than expected. The personal consumption expenditures, or PCE
price index, climbed 2.4% in the 12 months through
November, below the 2.5% estimate. This is the
Federal Reserve's preferred measure of inflation, excluding the volatile
food and energy components, the PC pricing. climbed
0.1%. That was the smallest rise since May. A
separate report showed consumer spending increased in November. There
was strong demand for a range of goods and services
, underscoring the economy's resilience, which saw the Fed
this week projecting fewer interest rate cuts in 2025 than
it had in September. The nearly Based increase in
spending was led by new motor vehicles, likely in
part due to households replacing vehicles damaged during Hurricanes Helene
and Milton. One economist told Reuters the economy continues
to grow, and prices of some goods remain stubbornly
high, which supports the Fed's hesitancy to materially lower
rates next year.