Consumer prices rise by mild 0.2 percent

Consumer prices calmed down in November, helped by smaller increases in energy and food. That means the Federal Reserve probably will continue raising interest rates only gradually to keep inflation under control.

The government’s closely watched inflation barometer, the consumer price index, rose 0.2 percent last month, compared with a 0.6 percent spike in October, the Labor Department reported Friday.

The jump in October reflected surging energy prices, as crude oil costs hit record highs, and soaring food prices related to supply disruptions from a string of hurricanes that ripped through the Southeast. Energy and food costs, however, moderated last month, helping to restrain the overall CPI.

Economy

Bush predicts steady economic growth

The Bush administration released a new economic forecast for 2005 in which it boosted growth forecasts slightly from a year ago but cut back sharply on its estimates of new jobs.

The administration said the overall economy as measured by the gross domestic product would grow by 3.5 percent next year and 3.4 percent in 2006.

The administration expects payroll employment to average 131.3 million for 2004, down by 1.4 million from the forecast of a monthly average of 132.7 million jobs it made just a year ago.

Aviation

United Airlines pilots OK another pay cut

Pilots at United Airlines face a 15 percent pay cut, their second double-digit wage reduction in two years, and will not further resist the company’s elimination of traditional pensions under a tentative contract agreement made public Friday.

The pilots’ union reluctantly approved the proposed five-year contract late Thursday, hoping to help lift the cash-strapped airline out of Chapter 11 bankruptcy in 2005 after more than two years of restructuring.

The contract sets an important precedent both for ongoing negotiations with other United unions and for rival airlines that also are slashing their labor costs.

Insurance

MetLife subsidiary gets notice from SEC

MetLife Inc., one of the nation’s largest insurers, said Friday that one of its subsidiaries had received a notice that the Securities and Exchange Commission was considering civil charges against the unit.

The so-called Wells notice was received by the New England Life Insurance Co. in connection with a previously disclosed SEC investigation, according to the New York-based company.

The investigation has focused on a $31 million after-tax charge taken in the second quarter of 2003 “resulting from certain improperly deferred expenses at NELICO,” MetLife said.