In a continued reversal from months of easing, US inflation has risen to 2.7% in November 2024. Indeed, the US Consumer Price Index (CPI) shows that inflation is up for the second straight month. Specifically, it increased from 2.6% in October, which came after seven months of falling inflation for the country.
The data will be crucial for the Federal Reserve as they once again decide whether or not to cut interest rates. The central bank is set to meet next week, where they will make the crucial decision. With inflation increasing, all eyes are on if officials will still follow through with an expected cut.
BREAKING: 🇺🇸 US inflation rises to 2.7%.
— Watcher.Guru (@WatcherGuru) December 11, 2024
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US Inflation Rises Yet Again as Federal Reserve Nears Interest Rate Decision
For the last two years, the United States has been embraced in a vicious fight against inflation. In June of 2022, the figure reached a peak of 9.1% and became a massive reason why US citizens called for a change in government leadership from the current regime. Ultimately, leading to the reelection of Donald Trump in November.
Yet, the Federal Reserve enacted an ongoing interest rate hike that lasted from March 2022 to July 2022. That led inflation to fall for seven straight months before backtracking in October. Now, the latest data has shown that US inflation has risen to 2.7% in November 2024.
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That is up from last month’s 2.6% and increased from September’s 2.4% figure. Moreover, it shows that the mark has yet to retreat to the Fed’s target of 2%. However, there is still progress, as economists still predict that target to become a reality at some point in 2025.
In recent statements, Fed Chair Jerome Powell said that central bank officials want to “recalibrate” its rate to align with lessening inflation. Now, all eyes are on how the impending presidency of returning Donald Trump will affect those efforts. There are many who expect his proposed tariff plan would be a massive driver of increased inflation.
