Fed’s Favored Inflation Gauge Picks Up, Backing Cautious Stance

Good morning. Data watchers in the US got a full serving of figures before the Thanksgiving holiday. Microsoft is said to be the subject of a broad antitrust probe. And Australia is nearing a social media ban for children. Listen to the day’s top stories.

US economy watchers certainly got their fill of data on Wednesday during a shortened holiday week. The Federal Reserve’s preferred measure of underlying inflation increased in October due in part to the impact of higher stock prices on the calculation. The stubborn inflation data helps explain policymakers’ more cautious approach to lowering interest rates. And there’s a bit of good news for homebuyers: Mortgage rates are on the decline, contributing to an unexpected jump in pending home sales to a seven-month high last month.