Prices tick up but gauge shows pressures eased

WASHINGTON — An inflation gauge closely watched by the Federal Reserve barely rose last month, a sign that price pressures cooled.

Friday's report from the Commerce Department showed prices rose just 0.1% from October to November. Excluding volatile food and energy categories, prices ticked up just 0.1%, after two months of 0.3% gains. The report came two days after Federal Reserve officials said they expect to cut their key interest rate two times in 2025, down from four in their previous estimate.

Year-over-year inflation edged up to 2.4% in November from 2.3% in October, still above the Fed's 2% inflation target. But year-over-year "core" prices, which exclude volatile food and energy costs, were unchanged at 2.8%. The Fed pays closer attention to the core figures.