Inflation Cooled Slightly as Underlying Pressures Remained Stubbornly High

Inflation held nearly steady in November, as cost declines for gasoline and long-lasting goods mostly offset price increases for housing, transportation and some other services.

The consumer-price index rose 3.1% in November from a year earlier, a slight slowdown from 3.2% in October, the Labor Department said Tuesday. Prices were up 0.1% from the prior month after holding steady in October.

Core prices, which strip out volatile food and energy components, rose 4% in November from a year earlier, the same as October. On a monthly basis, core prices rose 0.3%, faster than would be consistent with the Federal Reserve’s long-term inflation target of 2%.

Consumer-price index, change from a year earlierSource: Labor DepartmentNote: Core excludes food and energy prices.

The Fed is on track to hold rates steady at its meeting Tuesday and Wednesday, and the latest inflation data won’t change that path. The latest reading is probably a bit firmer than the Fed would like to see to be confident that inflation is moving back quickly to its 2% goal, but it is unlikely to alter the Fed’s near-term policy stance because inflation has improved markedly this year.