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The Federal Reserve’s preferred inflation gauge rose slightly in November – but not as much as economists expected, an indication that price increases are not accelerating in a worrying way.

Still, concerns about the cost of living are increasing as we approach 2025 and uncertainty about possible inflationary global events and domestic politics increases.

The personal consumption expenditure price index rose 2.4% in November from a year earlier, accelerating from the 2.3% increase recorded in October, according to new Commerce Department data released Friday.

On a monthly basis, prices rose just 0.1%, a slower pace of growth than October’s 0.2% increase. Economists expected a monthly increase of 0.2%, according to FactSet.

An increase in the annual inflation rate was certainly expected given comparisons with the same period last year, when inflation cooled quickly, as well as some hurricane- and holiday-related price increases that were considered temporary.

However, Friday’s numbers came in better than economists’ expected monthly gains of 0.2% and annual gains of 2.5%, according to FactSet consensus estimates.

Additionally, closely watched “core” inflation, which excludes the more volatile food and energy categories, rose at the slowest monthly pace since May, keeping the annual rate steady at 2.8%, Commerce Department data show.

Inflation has cooled significantly this year but has moved sideways in recent months, prompting the Fed to take a more cautious approach to cutting interest rates next year. Fed Chairman Jerome Powell said on Wednesday that there had been “significant progress” on inflation but uncertainty was also increasing.

While developments suggest disinflation remains on the horizon, there is heightened concern about how this could change next year. Most economists say President-elect Donald Trump’s policy proposals on tariffs, immigration and taxes could be inflationary.

Cleveland Fed President Beth Hammack, who dissented at the Fed’s monetary policy meeting earlier this week and favored a pause instead of the quarter-point cut opted for by the other 11 voting Fed officials, said she needed “further evidence that inflation is on its way again”. to our 2% goal.”

Until then, “I believe that monetary policy will need to remain moderately restrictive for some time,” she said in a statement released Friday morning.

“The momentum of the economy and recent elevated inflation readings led me to revise my inflation forecast upwards for next year,” Hammack added. Ultimately, she said her decision was “a close call,” echoing Powell, who also said Wednesday’s rate cut decision was “a close call” compared to recent meetings.

This story is evolving and will be updated.