With the Federal Reserve set to decide on if it will continue the pause on interest rates Wednesday, the economy continues to battle back inflation.
The annual inflation rate dropped to 3.1 percent in November from 3.2 in October, according to new data from the Bureau of Labor Statistics. It is down from 3.7 percent in September.
The core index, minus the volatile food and energy categories, stayed at 4 percent for the second straight month.
The improved inflation report arrives as the Federal Reserve considers a third straight pause to interest rate hikes. In November, the Federal Reserve held the target range for federal funds at 5.25 to 5.5 percent.
Shelter’s 5.5 percent increase in the past 12 months, continues to drive inflation, as gasoline prices are down 8.9 percent.
Used vehicles stopped a retreat on the consumer price index, rising 1.6 percent in November. Used vehicles are down 3.8 percent in the past year.
“The used cars and trucks index rose 1.6 percent in November, ending a string of five consecutive monthly decreases in that index,” the BLS reported.
Motor vehicle insurance increased again by 1 percent and is up 19.2 percent in the past year.
