The key measure of US prices rose only 0.1% in November. This is the fifth month in a row that inflation has declined after reaching a 40-year high this summer. The US core PCE price index rose 0.2% monthly in November, in line with Wall Street's expectations. The annual rate of the core PCE price index fell from 5% to 4.7% in November, the lowest level since October 2021. Overall, the inflation rate is declining, but it's not fast enough for the Federal Reserve. The Federal Reserve is concerned that prolonged periods of high inflation may stimulate workers to demand higher and higher wages, making prices more difficult to control. Labor costs are the biggest expense for most companies. The Federal Reserve plans to raise interest rates further to slow the economy to a point sufficient to ease the pressure of rising wages. This strategy will inevitably raise the unemployment rate and may trigger a recession.