Inflation Is Still a Little Warm for the Fed’s Liking

Inflation is cooling, but it’s still trending above the Federal Reserve’s 2% target, according to Labor Department data released this week.

Core prices, which exclude volatile food and energy costs, rose at a 2.9% six-month annualized rate in November, down from 5.1% for the six-month period before that.

The latest inflation readings are a little stronger than the Fed would like to see to be confident inflation is moving quickly toward its goal. Policymakers and economists track core prices because they’re viewed as a better indication of future inflation.