The Labor Department reported that "core inflation" remained unchanged in November from a month earlier and was 2% higher than a year ago. A 2% annual inflation rate is widely believed to be within the target range preferred by most central bankers.
"Core inflation" excludes food and energy, as these tend to be more volatile than other goods and services. For example, energy prices have fallen about 70% since July and 17% in November alone! This is most obvious to most of us when it's time to fill up the gas tank.
The Federal Open Market Committee is meeting today and most analysts expect a rate cut of .5%. The recent inflation numbers make that scenario even more likely now.
No comments:
Post a Comment