US consumer prices post largest gain in 7 months

WASHINGTON - US consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Federal Reserve from cutting interest rates for a third time next week against the backdrop of a cooling labour market.

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WASHINGTON - US consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Federal Reserve from cutting interest rates for a third time next week against the backdrop of a cooling labor market.

The Consumer Price Index (CPI) rose 0.3 per cent in November, the largest gain since April after advancing 0.2 per cent for four straight months, the Labour Department's Bureau of Labour Statistics said on Dec 11. In the 12 months through November, the CPI climbed 2.7 per cent after increasing 2.6 per cent in October.

Economists polled by Reuters had forecast the CPI rising 0.3 per cent and advancing 2.7 per cent year on year.