Consumer price index increases 0.1 in November
CPI advances 3.1 on yearonyear basis
Core CPI rises 0.3; up 4.0 on yearonyear basis

WASHINGTON, Dec 12 Reuters U.S. consumer prices unexpectedly rose in November as a decline in the cost of gasoline was more than offset by increases in rents, further evidence that the Federal Reserve was unlikely to pivot to interest rate cuts early next year.

The report from the Labor Department on Tuesday also showed prices for used cars and trucks rebounded last month after five straight monthly decreases, helping to boost underlying inflation. U.S. consumers also paid more for healthcare and motor vehicle insurance.

The slightly firmer inflation readings followed data last Friday showing job gains accelerated in November and the unemployment rate fell to 3.7 from nearly a twoyear high of 3.9 in October. Officials from the U.S. central bank began a twoday policy meeting on Tuesday.

Ongoing housing price pressures and their outsized influence on inflation overall tell a large part of the story of why calls for early and rapid Fed monetary policy easing should be viewed with significant scrutiny, said Kurt Rankin, senior economist at PNC Financial in Pittsburgh, Pennsylvania.

The Fed will not cut rates until inflation39;s drivers are well and truly tamed.

The consumer price index CPI edged up 0.1 last month after being unchanged in October, the Labor Department39;s Bureau of Labor Statistics said. Gasoline prices decreased 6.0…