US inflation eases to 3.1% in November

The news: US inflation continued its decline in November, down 0.1% to 3.1% in the year to October.

The numbers: Core CPI ticked up just 0.1%, keeping the figure at 4% per annum. Energy prices dropped 2.3% month on month, and 5.4% on an annual basis, in keeping with a fall in gas prices during November.

The context: All eyes remain fixed on the Federal Reserve’s two day meeting this week, as stubborn inflation is unlikely to encourage interest rate cuts any time soon. The Associated Press reported that during a recent appearance, Fed chair Jerome Powell said “it would be premature to conclude with confidence” that the Fed has raised its benchmark interest rate high enough to fully defeat inflation.