U.S. CPI Rises to 3.1% Year-over-year

The U.S. Core inflation rose in November, strengthening the Fed's probability for keeping interest rates at high levels in the near term.

The core CPI, which excludes food and energy costs, rose 0.3% after rising 0.2% in October, according to government figures. A year ago, it was up 4%.

Economists favor the core index as a better benchmark for measuring inflation than the overall Consumer Price Index, which rose 3.1% on an annual basis.

The data - released Tuesday - confirms the volatile nature of returning inflation to its target. While price pressures have largely eased from multi-decade highs, continued labor market strength continues to support consumer spending and the broader economy.

Federal Reserve officials begin a two-day meeting that is expected to end by keeping interest rates at their same levels again. Chairman Jerome Powell is likely to reiterate a more sustained decline in price growth before easing monetary policy.

"Powell and other Fed officials have welcomed inflation’s steady fall from 9.1% in June 2022. But they have cautioned that the pace of price increases is still too high for the Fed to let down its guard," fortune said.

After the release of the data, stock futures maintained their gains, Treasury bond yields declined, and the dollar fell.