Inflation Remains Steady as Energy Prices Drop and Housing Costs Persist

Inflation in the US cooled in November on an annual basis, with prices rising 3.1% over the prior year, slightly lower than October's 3.2% gain. However, prices ticked up slightly on a monthly basis, adding to the debate over when the Federal Reserve will start to lower interest rates. Lower energy costs, particularly falling gas prices, contributed to the smaller gain in headline figures. Core inflation, which excludes food and gas, remained unchanged at 4.0% on an annual basis. Housing costs, particularly rent prices, remained elevated. The Federal Reserve is expected to hold rates steady at its policy meeting this week, but market expectations of rate cuts early next year may be disappointed due to stubborn wage and core inflation pressures.