Chair Jerome Powell says the Federal Reserve will likely cut its key interest rate slowly and deliberately in the coming months, in part because inflation has shown signs of persistence and the Fed’s officials want to see where it heads next.

October inflation readings out this week have shown little progress toward the Fed's 2% inflation target, putting into question how deeply the Federal Reserve will cut interest rates in 2025. On Wednesday,

October's Consumer Price Index (CPI), which measures changes in the cost of consumer goods and services, showed that annual inflation rose by 2.6%. That's not an alarmingly high rate of inflation. It's also only a modest uptick from September's CPI reading, which measured annual inflation at 2.4%.

Inflation has cooled notably, but a pickup in annual price increases underscores that it is not fully back to normal.

The Federal Reserve might not see much more inflation relief before it decides next month whether to keep cutting interest rates. Using the latest Labor Department data, many economists are projecting this morning that 12-month core PCE inflation rose back to 2.

The head of the Federal Reserve said Nov. 14 that the central bank will likely cut its key interest rate slowly and deliberately in the coming months, in

The Labor Department on Wednesday reported that consumer prices in October rose 2.6% from a year earlier. That marks a pickup in the pace of inflation from September, when prices were up 2.4% on the year.

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world US inflation remained firm in October rather than continuing its irregular descent,

New data shows inflation rose slightly as the Federal Reserve navigates interest rate cuts following signs of cooling prices and a weaker labor market. CBS News contributor JD Durkin has more.