As of November 2024, the United States reported an annual inflation rate of 2.7%, a slight increase from 2.6% in October. This marks the second consecutive month of rising inflation, with the Consumer Price Index (CPI) increasing by 0.3% from October to November.
The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) price index, also indicated a year-over-year increase to 2.4% in November, up from 2.3% in October. These figures suggest that while inflation remains above the Federal Reserve’s 2% target, it has significantly declined from the peak of 9.1% observed in June 2022.
The Federal Reserve has been adjusting interest rates in response to these inflation trends. In December 2024, the Fed reduced its benchmark interest rate to approximately 4.3% and signaled a more gradual approach to rate cuts in 2025, anticipating two reductions if inflation continues to decelerate and the economy maintains growth.
The next update on inflation rates is scheduled for release on January 15, 2025, at 8:30 a.m. ET, which will provide data for December 2024.