Inflation Cooling but Still Hot as Fed Eyes Latest Data
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Inflation has slowed since hitting a 40-year high of 9.1% in June 2022 but remains well above the Fed's 2% target.
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The November CPI report is expected to show inflation drifted down further, but a core measure the Fed watches may have ticked up again.
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Prices of goods like furniture and cars should keep falling as supply issues resolve, but services inflation persists amid labor shortages.
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Hotel and airfare components of core inflation may have stopped declining or risen, pushing the measure higher.
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The report likely won't alter the Fed's near-term outlook but could affect the tone of its messaging and market sentiment.