US inflation rate up slightly as Fed ponders interest rate hike

The US inflation rate barely moved in November, the last piece of major economic news before the Federal Reserve decides whether to cut interest rates for the third time in as many months at its meeting next week.

- Lauren Aratani

Prices rose 2.7% in November compared with a year before, according to consumer price index data released by the US Bureau of Labor Statistics yesterday that measures the prices of select goods and services.

The core inflation rate, which removes volatile food and energy prices from the data, also held steady last month at 3.3%.

The annual rate of inflation remains above the Fed's target of 2%, and many economists and investors are betting the central bank will cut rates on Wednesday. Expectations place a potential cut at a quarter-point, which would bring rates down to 4.25% from 4.5%.