Inflation Continues to Run Hot in November as Spending and Incomes Increase

A barometer of inflation that is the Federal Reserve’s preferred indicator of pricing pressure rose at an annual rate of 5.7% last month, the Labor Department reported on Thursday.

Excluding often volatile food and energy costs, the core index rose 4.7% annually, up from 4.2% in October. While the overall index was in line with estimates, the core was below. Both are still way above the Fed’s stated goal of average annual inflation of 2%.

It is the first reading of inflation since Fed Chairman Jerome Powell announced an aggressive...