By Lucia Mutikani WASHINGTON (Reuters) - Underlying U.S. 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 consumer prices in check. The Labor Department said on Tuesday its so-called core Consumer Price Index, which excludes food and energy, gained 0.2 percent last month. It was the third straight month that the core CPI increased by that margin, and reflected rising rents, airline fares, new motor vehicles and healthcare costs. In the 12 months through November, the core CPI rose 2.0 percent, the largest gain since May 2014, after being up 1.9 percent in October. The Fed targets 2 percent inflation and it tracks an index that is running far below the core CPI. Fed officials started a two-day policy meeting on Tuesday. The U.S. central bank is expected to lift its benchmark overnight interest rate from near zero at the end of the meeting on Wednesday, encouraged by a strengthening labor market. The Fed has not raised interest rates since June 2006. "This report should shore up the Fed's confidence in the inflation outlook as the firming in domestic prices will likely serve as a confidence booster in their expectation for inflation to move back towards target in a timely manner," said Millan Mulraine, deputy chief economist at TD Securities in New York. There is optimism that tightening labor market conditions, characterized by a jobless rate now in a range that some Fed officials view as consistent with full employment, and strong domestic demand will put upward pressure on wages and drive inflation toward its target. Inflation is also seen heading higher in 2016 as the effects of last year's sharp drop in oil prices fade. The dollar's pace of appreciation is also expected to slow, which could ease some of the pressure on commodity prices. Signs of firming inflation pressures and a rebound in crude oil prices from near 11-year lows weighed on U.S. Treasury debt prices. The dollar firmed against a basket of currencies <.DXY> and U.S. stocks were track for their second day of gains. [US/N] [FRX/] [.N] MODERATE PACE Other data on Tuesday showed factory activity in New York state contracted for a fifth straight month in December as the sector continues to reel from dollar strength and ongoing efforts by businesses to reduce an inventory bloat. Homebuilder confidence dipped in December, but remained at levels consistent with a gradual housing market recovery. "Housing market activity continues to improve at a moderate pace," said Jesse Hurwitz, an economist at Barclays in New York. Last month's increase in the core CPI was offset by falling gasoline prices, leaving the overall CPI unchanged after a 0.2 percent increase in October. But in the 12 months through November, the CPI increased 0.5 percent, the largest gain since last December. Energy prices fell 1.3 percent, with gasoline prices dropping 2.4 percent after rising 0.4 percent in October. The cost of electricity, however, increased 0.3 percent. Food prices dipped 0.1 percent, reversing the prior month's gain. Within the core CPI, rents increased 0.2 percent after rising 0.3 percent in October. They were up 3.6 percent in the 12 months through November, reflecting rising demand for rental accommodation as more Americans shun home ownership. Healthcare costs increased broadly, with doctor visits rising 1.1 percent. Apparel prices fell for a third straight month, while airline fares increased 1.2 percent. There were also increases in the cost of tobacco, education, communication and motor vehicle insurance. "We think that the underlying strength of the domestic economy will continue to allow inflation rates to grind higher," said Harm Bandholz, chief economist at UniCredit Research in New York. (Reporting by Lucia Mutikani; Editing by Andrea Ricci, Frances Kerry and James Dalgleish)
Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting
- Best Life
Even though the world has been dealing with the COVID-19 pandemic for nearly two years, we're still learning about the virus and how it can affect our bodies. One area of understanding that has been particularly difficult to grasp has been the wide range of symptoms the virus can cause and how some can stick around long after recovery. Now, a new study has found that one symptom is having a long-term effect on about half of people who have caught COVID. Read on to see which ailment could be stic
- The Providence Journal
Computer models continue to "boost confidence" that Southern New England will get hit with "a high impact winter storm" Saturday.
- Fort Worth Star-Telegram
The creature was found after a Crime Stoppers tip.
The former president's son received a quick reminder about his father.
- Lubbock Avalanche-Journal
The Olton-Farwell boys basketball game on Tuesday night was postponed after officials left following the girls game.
- Footwear News
Britney Spears Dances in Yellow Target Bikini and Unexpected Heels With an Empowering Body-Confident Message
Spears danced on Instagram in a yellow Target bikini, paired with brown pointed-toe pumps.
- In The Know by Yahoo
Little boy has sweetest reaction when he spots parents in audience: ‘Proof that being present can make a big difference’
His whole face changed the second he saw them, and the footage is going viral.
- Yahoo Entertainment
Even Pat Sajak was surprised by the first thing the contestant asked for following the celebratory confetti.
- Kansas City Star
”I just wish I could do what I want without getting attacked every week,” tweeted Brittany Matthews, co-owner of Kansas City Current and fiancee of Chiefs quarterback Patrick Mahomes.
- The Hill
Texas Gov. Greg Abbott (R), Lt. Gov. Dan Patrick (R) and state Attorney General Ken Paxton (R) have urged the Texas Court of Criminal Appeals to reverse its ruling that Paxton cannot unilaterally prosecute voter fraud.Both Abbott and Patrick issued separate statements on Tuesday criticizing the court for undermining their push for "election integrity," a move that critics have called voter suppression for minorities who tend to vote Democratic,...
The GOP Virginia governor's email hotline seeking reports of “divisive practices” in schools has received some, well, interesting responses.
- E! News
Evan Marriott became an overnight TV sensation when he starred on the 2003 dating series Joe Millionaire. Scroll on to see what he's up to now.
After Hearing This Woman's Story, Waiters And Waitresses Are Stepping Forward To Share How Often Customers Lie To Try To Get Free Food
It's time for a change.View Entire Post ›
- Rams Wire
As if Matthew Stafford's game-saving bomb to Cooper Kupp wasn't amazing enough, this camera angle makes it that much better
- The Daily Beast
Facebook/Alicia WittA month after her parents’ shock deaths from hypothermia, actor Alicia Witt took to Facebook Tuesday to detail how the preventable tragedy has left her reeling and struggling with what she could have done to save them. In a raw statement released Tuesday, the 1984 Dune actor and Orange Is the New Black star wrote that “i had no idea that their heat had gone out. i will never understand how or why they made the choice not to tell me this, not to let me help them with this. my
- Akron Beacon Journal
'He's The One': Evan Mobley leaves Cavs teammates awestruck as rookie makes franchise, league history
'I find myself on the bench watching him in awe,' Cavs forward Dean Wade said of Mobley, the third overall pick from USC
It’s no secret that Prince Harry is seeking a judicial review after his security request in the U.K. was denied . However, there’s a...
- The Daily Beast
A middle-age Southern California man is accused of lying in wait outside local schools for children wearing masks—and then following them around so he can cough at them, spit on them, and taunt them for being “stupid” enough to don the face coverings.The man, captured on video wearing a “Your mask makes you look stupid” T-shirt, has allegedly been continuing his anti-mask harassment campaign for a month in suburban La Crescenta, with a string of alleged incidents under his bel
- NBC Sports
USMNT host El Salvador on Thursday in Columbus, Ohio as Gregg Berhalter's side are huge favorites to move one step closer to qualification for the 2022 World Cup.
- Kansas City Star
Allen was impressed with the gesture by the Chiefs’ Patrick Mahomes.