US inflation edged up last month, fuelled by higher second-hand car and housing costs, but investors still believe that the Federal Reserve will lower interest rates next week.
The consumer price index in the world’s largest economy increased to 2.7 per cent in the year to November, up from 2.6 per cent the previous month, according to figures from the US Bureau of Labor Statistics.
The rise was in line with expectations.
The S&P 500 climbed by 55.1, or 0.9 per cent, to 6,090.01 after the figures were published on Wednesday. The Dow Jones industrial average was up 40 at lunchtime in New York at 44,287.49, while the tech-heavy Nasdaq Composite rose by 337, or 1.7 per cent, to 20,024.25. The dollar index, which measures