Even though average paychecks have outpaced inflation over the past year, many Americans are frustrated that overall prices are well above where they were before inflation erupted three years ago.
Inflation has become a pivotal issue in President Biden’s bid for re-election, with Americans exasperated that average prices are still about 19 percent higher than they were when he took office.
Measured from a year ago, core prices — considered by the Fed a better guide to the future path of inflation — rise 4 percent, the same as in October.
In Friday’s report from the Labor Department, the unemployment rate drops to 3.7 percent from 3.9 percent, not far above a five-decade low of 3.4 percent in April.
It’s the smallest year-over-year increase since June, though core inflation is running at 4 percent, twice as high as the Fed’s inflation goal.
Most Fed watchers expect the central bank to keep rates unchanged in December as well.