U.S. consumer prices were unchanged in November as declines in energy and food held down overall costs. But core inflation was up 2 percent over the 12 months ending in November. That was the fastest pace in more than a year and the kind of increase Fed officials want to see to justify the start of a round of interest rate increases.
The costs of food, gasoline, shelter and medical care rose last month, a sign that consumer inflation may be moving up toward the Federal Reserve's target level and keeping the Fed on track to raise short-term interest rates from record lows next month.
Core consumer prices outside of food and energy posted the biggest increase in April in more than a year, suggesting that an improving U.S. economy is finally starting to lift prices. That could prompt the Federal Reserve to start raising interest rates later this year.