Inflation remained elevated in November at a level well above the Federal Reserve’s target rate as policymakers weigh potential interest rate cuts next year.
The Bureau of Labor Statistics said on Thursday that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.2% in November compared with September, while it increased to 2.7% on a year-over-year basis.
Both of the figures were cooler than the expectations of economists polled by LSEG, who projected a 0.3% monthly rise and a 3.1% year-over-year figure.
So-called core prices, which exclude volatile measurements of gasoline and food to better assess price growth trends, were up 0.3% from the prior month and 2.6% from a year ago. The monthly figure was in line with economists’ expectations, while the annual number was cooler.
The release of the November CPI inflation report was delayed by the 43-day government shutdown, which concluded last month and impacted data collection, causing the release date to be pushed back from Dec. 10.
High inflation has created severe financial pressures in recent years for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Price hikes are particularly difficult for lower-income Americans, because they tend to spend more of their already-stretched paychecks on necessities and have less flexibility to save.
Food prices were up 2.6% in November compared with a year ago, while monthly figures for the last two months were unavailable due to the shutdown. The food at home index was up 1.9% from last year, while the food away from home index was up 3.7%.
Meats, poultry and fish prices were up 6.8% from a year ago, while egg prices were down 13.2% as a supply shortage stemming from an avian flu outbreak has eased. The fruits and vegetables index showed prices up just 0.1% over the last year.
Energy prices rose 4.2% from last year. Gas prices were up just 0.9% from a year ago, while fuel oil costs rose 11.3%. Propane, kerosene and firewood prices were down 5.9%. Electricity costs rose 6.9% in November compared with last year, while utility gas service prices were up 9.1%.
This is a developing story. Please check back for updates.
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