US inflation likely cooled again last month as Fed prepares to assess interest rates

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — This year’s steady slowdown in U.S. inflation likely continued in November, though the latest data may also point to sharply higher prices in some areas of the economy. Tuesday’s data is expected to show that businesses kept overall prices unchanged for a second straight month. Falling gas prices, in particular, are thought to have offset a rise in food costs. And compared with a year earlier, inflation is expected to drop from to 3.1% from 3.2% in October. But a closely watched category called “core prices,” which excludes volatile food and energy costs, is predicted to rise 0.3% from October to November, a monthly pace that far outpaces the Federal Reserve’s 2% annual target.