Friday, December 16, 2011

Consumer Prices Unchanged in November

The Consumer Price Index remained unchanged in November, following a 0.1% drop in the previous month, according to a Bureau of Labor Statistics report released this morning. Despite the unchanged headline reading, core inflation accelerated slightly to a 0.2% pace, up from 0.1% in October.

The headline index was driven lower primarily by a decline in the energy index, which fell 1.6% over the month. Food prices rose 0.1%, continuing the previous month’s trend. Core inflation strengthened in November, as a result of goods prices rising 0.1%. Service prices continue to rise at 0.2%.

Prices are now 3.4% above their level one year ago, a slower pace than the 3.6% reported in October. Core prices have risen less over the past year and stand 2.2% above their level this time last year.

There are some supply constraints in the economy that are holding core CPI inflation up however, core inflation is expected to moderate in coming months.

Read the report.

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