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US consumer prices post largest rise in seven months

US consumer prices increased in November by the most in seven months.
 
But the Federal Reserve was still expected to deliver a third consecutive interest rate cut next week to support a labour market that has been cooling.
 
Progress in lowering inflation toward the US central bank's 2% target has virtually stalled, with the report from the Labor Department on Wednesday also showing no improvement in the measure of underlying price pressures over the last four months.
 
Despite persistently high inflation, there was some encouraging news. Rents, one of the stickier components of inflation, rose at the slowest pace in nearly 3.5 years. 
 
The rise in motor vehicle insurance, another troublesome category, moderated. These factors slowed the increase in services inflation.


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