US Consumer Prices Fall In November
WASHINGTON (AP) — Plunging gasoline costs caused U.S. consumer prices to drop in November, muting inflation across the entire economy.
The Labor Department says the inflation reading fell 0.3 percent last month, after prices were flat in October. Gas costs plummeted 10.5 percent in November, the steepest decline in nearly six years.
Core inflation, which excludes volatile energy and food prices, rose 0.1 percent in November. For the past 12 months, overall inflation has risen 1.3 percent while core inflation has increased 1.7 percent.
Both annual gains are well below the Federal Reserve's 2 percent inflation target. This gives Fed officials who end their policy meeting Wednesday afternoon significant leeway to keep a key interest rate at near zero, which helps infuse the economy with capital to boost economic growth and hiring.
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