Photo: Courtesy of Peter Sommer Travels
The November read on consumer prices (CPI) is out and the numbers were a tad cooler than expected.CPI fell 0.3 per cent versus economists’ estimates for a 0.2 per cent decline.
Excluding food and energy, prices climbed by 0.1 per cent, which was lower than expectations for a 0.2 per cent gain.
On a year-over-year basis, CPI climbed by just 1.8 per cent.
On Wednesday, the Federal Reserve said that it would keep interest rates exceptionally low as long as the inflation rate stayed below 2.5 per cent and the unemployment rate was above 6.5 per cent.
From the Bureau of labour Statistics:
The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.3 per cent in November on a seasonally adjusted basis, the U.S. Bureau of labour Statistics reported today. Over the last 12 months, the all items index increased 1.8 per cent before seasonal adjustment.
The gasoline index fell 7.4 per cent in November; this decrease more than offset increases in other indexes, resulting in the decline in the seasonally adjusted all items index. The energy index fell 4.1 per cent in November despite increases in the indexes for natural gas and electricity. The food index rose 0.2 per cent with the food at home index increasing 0.3 per cent, the same increases as in October.
The index for all items less food and energy increased 0.1 per cent in November after a 0.2 per cent increase in October. The indexes for shelter, household furnishings and operations, airline fares, recreation, new vehicles, and medical care all increased in November, while the indexes for apparel and used cars and trucks declined.
The all items index increased 1.8 per cent over the last 12 months, a decline from the 2.2 per cent figure in October. The index for all items less food and energy rose 1.9 per cent over the last 12 months, slightly lower than the October figure of 2.0 per cent. The food index has risen 1.8 per cent over the last 12 months, and the energy index has risen 0.3 per cent.