An inflation measure watched by the Fed eases to 5.5%

WASHINGTON (AP) — A measure of inflation closely watched by the Federal Reserve slowed last month, another sign that a long surge in consumer prices seems to be easing.

Friday’s report from the Commerce Department showed that prices rose 5.5% in November from a year earlier, down from a revised 6.1% increase in October and the smallest gain since October 2021. Excluding volatile food and energy prices, so-called core inflation was up 4.7% over the previous year. That was also the smallest increase since October 2021.

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Inflation, which began surging a year and a half ago as the economy bounced back from 2020′s coronavirus recession, still remains well above the 2% year-over-year growth the Fed wants to see.