Inflation saw a small rise again in November, following no changes in October. After the recent pause in rate hikes from the Fed, this reading is in line with economist predictions that the Fed could continue the pause, and possibly halt rate hikes altogether.
The Consumer Price Index saw 0.1% increase in its November reading. Over the last 12 months, the index increased 3.1% before seasonal adjustment, according to the latest Labor Department report released Tuesday.
The index for shelter continued to rise, offsetting a decline in the gasoline index. The energy index fell 2.3% over the month as a 6% decline in the gasoline index more than offset increases in other energy component indexes. The food index increased 0.2%, after rising 0.3% in October. The index for food at home increased 0.1% over the month and the index for food away from home rose 0.4%.
The index for all items less food and energy—also known as core inflation—rose 0.3%. Indexes that increased in November include rent, owners’ equivalent rent, medical care, and motor vehicle insurance. Meanwhile, the indexes for apparel, household furnishings and operations, communication, and recreation decreased over the month.
The all items index rose 3.1% for the 12 months ending November, a slightly smaller increase than the 3.2% seen for the 12 months ending September. The all items less food and energy index rose 4% over the last 12 months, its smallest change since September 2021. The energy index decreased 5.4% over the last 12 months and the food index increased 2.9% over the last year.
“The Consumer Price Index (CPI) rose 0.1% in November, bringing the annual inflation rate down to 3.1%, from 3.2% in October and 3.7% in September. The continuing decline in energy prices, headlined by falling gas prices, helped offset price increases in other categories such as shelter,” said Realtor.com Chief Economist Danielle Hale. “Despite the uptick in job growth and falling unemployment rate in November, today’s data show that the Fed’s historic monetary tightening is largely reining in inflation, a welcome piece of news for the Fed to consider in its two-day meeting that wraps up tomorrow (Dec. 13). Although Chair Powell would not rule out a rate hike in December following the November Fed meeting, today’s data generally reinforce the market’s expectation that the Fed will not need to hike its rate again in December.”
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