CNN
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Inflation rose again in November, but it probably wasn’t bad enough to stop the Federal Reserve from cutting interest rates next week.

Consumer prices rose 2.7% in the 12 months ended November, compared with the 2.6% annual increase in October, marking the highest annual rate since July, according to the latest consumer price index data released Wednesday by the Bureau of Labor Statistics became .

On a monthly basis, prices rose 0.3%, after rising 0.2% in the previous four months.

Economists expected inflation to pick up 0.2% from October and record an annual increase of 2.7%, largely due to unfavorable year-on-year comparisons and stubborn inflation linked to the housing market.

However, in November, costs associated with accommodation were not the main reason for the monthly increase: prices for accommodation increased by 0.3% for the month, accounting for almost 40% of the total gain. Instead, a big boost came from food prices (+0.4%) and energy prices, which rose 0.2%, recording the first increase in the category in six months.

Food and gas are two of the most visible and common causes of consumers struggling with inflation. However, they are also subject to great volatility due to events such as weather and disease.

To get a better sense of underlying inflation trends, economists and policymakers are taking a close look at “core values,” which exclude food and energy costs.

The core CPI rose 0.3% for the fourth straight month and has remained at 3.3% since September.

“The consumer price index confirms the market consensus for another rate cut (of a quarter point) by the Federal Reserve,” wrote Josh Hirt, senior U.S. economist at Vanguard, on Wednesday. “We are still closely monitoring the strength of the labor market and the possible persistence of certain components of inflation (housing, services) into 2025.”

The CPI measures price changes for a basket of commonly purchased goods and services.

And in November the cost of the shopping basket was higher than it had been for a long time.

Prices of food purchased for home consumption rose 0.5% since October, marking the largest monthly increase since January 2023.

Four of major grocery stores’ six food group indexes rose, with categories such as beef up 3.1% and eggs up 8.2%. An ongoing deadly avian flu, coupled with holiday demand, has driven up egg prices.

This story is evolving and will be updated.