Inflation in the United States increased to 2.7% in November, according to the latest Consumer Price Index (CPI) report.
The rise matches predictions by economists surveyed by FactSet, a financial data firm.
The CPI tracks changes in the prices of goods and services typically purchased by consumers, providing a key measure of inflation. While the Federal Reserve has worked to bring inflation under control since 2022, the current rate remains above its 2% target.
According to CBS News, inflation peaked at 9.1% in June 2022, prompting the Fed to raise interest rates aggressively to reduce spending by consumers and businesses. These efforts helped lower inflation to its current level, but further reductions have proven difficult.
The slow progress could complicate the Fed’s decision to continue cutting rates. In September, the central bank reduced rates for the first time in four years, followed by another cut in November, citing progress on inflation and a weaker job market.
However, analysts are now questioning whether more rate cuts are likely. “Since the Fed first cut rates in September, this inflationary number has stalled in its descent toward its stated 2% goal,” said Jay Woods, Chief Global Strategist at Freedom Capital Markets.
While many economists still expect the Fed to announce another rate cut at its meeting on December 18, some predict fewer cuts in 2025 as inflation proves harder to tame.
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