Underlying inflation creeps higher in November

Washington

UNDERLYING inflation pressures rose in November, which could give the Federal Reserve more confidence to raise interest rates on Wednesday, even as renewed weakness in gasoline prices kept overall US consumer prices in check.

The Labor Department said on Tuesday its so-called core Consumer Price Index, which excludes food and energy, increased 0.2 per cent last month. It was the third straight month that the core CPI increased by that margin.

In the 12 months through November, the core CPI rose 2.0 per cent, the largest gain since May 2014, after rising 1.9 per cent in October. The Fed targets 2 per cent inflation and it tracks an …