In November, inflation slowed as overall prices slightly decreased from October. The Personal Consumption Expenditures inflation measure, which the Federal Reserve relies on, rose 2.6% year-on-year, down from the previous month and lower than expected. After excluding food and fuel prices, inflation rose modestly on a monthly basis. This slower inflation rate is seen as positive progress, possibly leading to interest rate cuts. Consumer spending remains positive, although the economy is expected to slow in 2024, paving the way for sustained slower price increases. Policymakers are cautious about robust growth potentially leading to prolonged high inflation, which may require keeping rates higher for longer.