"Inflation Slows in November, Indicating Progress: CPI Report Preview"

The upcoming consumer price index (CPI) report is expected to show that overall inflation drifted lower in November, but an underlying measure closely watched by the Federal Reserve may tick up again. While a second consecutive tame CPI report could increase the Fed's comfort level with holding interest rates steady, it may not be enough to accelerate anticipated rate cuts. Other economic reports, such as consumer inflation expectations and the cooling job market, will also influence the Fed's outlook. Inflation has slowed since its peak in June 2022, but remains above the Fed's target.