Gas Prices Fall By Most Since December 2008

Consumer prices fell more than expected in November.

Headline inflation fell 0.3% in November, more than the 0.1% decline that was expected.

“Core” inflation, which excludes the more volatile cost of food and gas, rose by 0.1% in November, in-line with expectations.

The big drop in the report was the price of gas, which fell by the most since 2008 as the price of gas fell 6.6% in November, according to the latest release from the BLS. 

Overall, energy prices were down 3.8% in November.

Headline inflation rose 1.3% year-on-year, just below expectations, while core inflation rose 1.7%, also just below expectations. Compared to the prior year, headline inflation was expected to rise 1.4%, with inflation expected to rise 1.8% when excluding food and energy.

The report showed that in November, the cost of shelter rose 0.3%, while the cost of medical care, airline fares, and alcoholic beverages also rose. 

The indexes for apparel, new and used cars and trucks, recreation, household furnishings and personal care all declined.

Inflation data is the biggest economic data point on Wednesday morning ahead of this afternoon’s big Federal Reserve announcement.

More to come …

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