US inflation rate slows as fuel costs fall

us prices

The rapid rise in consumer prices is slowing in the US, as the costs of energy, used cars, medical care and airfare fall. US inflation rose 7.1% over the 12 months to the end of November, dropping from 7.7% in October, figures from the US Labour department show. That was the slowest pace in nearly a year and better than analysts expected. But though the overall picture is improving, the cost of some items such as housing continues to climb. The US central bank has raised interest rates at the fastest pace in decades this year, in an effort to get the inflation problem under control. Earlier this month, Federal Reserve chairman Jerome Powell said that the bank would start to move less aggressively to see how the moves are playing out in the economy. By boosting borrowing costs, the Federal Reserve is expecting to dampen demand for expensive items such as homes and cars, helping to slow the economy and ease the pressures pushing up prices.(BBC)…[+]