TechFlow news, December 11 — U.S. consumer prices recorded their largest gain in seven months in November, but against the backdrop of a cooling labor market, this is unlikely to prevent the Federal Reserve from cutting interest rates for the third time next week. Data showed prices rose 0.3% month-on-month last month, the biggest increase since April, after four consecutive months of 0.2% gains. The year-over-year CPI inflation rate ticked up to 2.7% following a 2.6% rise in October. Compared with its peak of 9.1% in June 2022, the annual inflation rate has significantly slowed.
Nevertheless, progress toward the Fed's 2% inflation target has effectively stalled in recent months. However, the Fed is now placing greater emphasis on the labor market. Although job growth accelerated in November after being severely disrupted by strikes and hurricanes in October, the unemployment rate rose to 4.2%, up from a two-month hold at 4.1%. (Jinshi)
