NEW YORK, Dec 12 Reuters The dollar pared losses against the euro and yen on Tuesday after data showed that some underlying measures of inflation remained relatively elevated in November even as price gains came in broadly as expected.

Headline inflation edged up 0.1 last month after being unchanged in October. In the 12 months through November, the CPI increased 3.1 after rising 3.2 in October. Economists polled by Reuters had forecast CPI would be unchanged on the month and gain 3.1 on a yearonyear basis.

Excluding the volatile food and energy components, the CPI increased 0.3 in November after climbing 0.2 in the prior month. But socalled supercore inflation, which tracks the cost of services minus energy and housing, rose 0.44 in the month up from 0.22 in October.

Once we dig into the data we can see that some of the underlying numbers are perhaps a little sticky, particularly the supercore numbers, said Shaun Osborne, chief foreign exchange strategist at Scotiabank in Toronto.

Generally weve seen sufficient progress on inflation to keep a rate cut as the next move, but its really about the timing at this point and these numbers suggest that we still need to see some further progress on some of these underlying measures before the Fed will be comfortable cutting interest rates, Osborne added.

Traders pushed back expectations on when the Federal Reserve is likely to begin cutting interest rates to May, from March, after data on Friday showed that employers added…