A new government report showed the annual inflation rate in November was 2.4%.
That was slightly below the consensus rate of 2.5% that was expected but still higher than the 2% rate that the Federal Reserve wants to reach.
While the Personal Consumption Expenditures (PCE) index was up less than expected the rate was the largest since July.
Other takeaways from the Bureau of Economic Analysis' November Personal Income Report was: Personal income increased $71.1 billion (0.3 percent at a monthly rate) in November.
Disposable personal income (DPI)—personal income less personal current taxes—increased $61.1 billion (0.3 percent).
Personal outlays—the sum of personal consumption expenditures (PCE), personal interest payments, and personal current transfer payments—increased $78.2 billion (0.4 percent) and consumer spending increased $81.3 billion (0.4 percent).
Personal saving was $968.1 billion and the personal saving rate—personal saving as a percentage of disposable personal income—was 4.4 percent in November.
The Fed cut its short-term interest rate by 0.25% on Wednesday putting it at a target range of 4.25%-4.5%.
