Inflation rises 2.7% in November, in line with expectations
FILE - A Miami Beach supermarket. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)
Inflation ticked higher again in November as prices remained stubbornly high for consumers, leaving Federal Reserve policymakers with fresh data to consider ahead of their meeting next week when another interest rate cut may be announced.
The Labor Department on Wednesday said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.3% in November while ticking up to 2.7% on an annual basis.
Those figures were in line with the expectations of economists polled by LSEG. Both the headline rate and monthly price growth figures were up compared with October's readings, which were 2.6% and 0.2%, respectively.
So-called core prices, which exclude more volatile measurements of gasoline and food to better assess price growth trends, were up 0.3% on a monthly basis in November and 3.3% from a year ago – both of which were unchanged from last month's readings.
The report showed that inflationary pressures in the U.S. economy remain persistent despite progress in bringing inflation closer to the Federal Reserve's 2% target over the past year.
High inflation has created severe financial pressures 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 paycheck on necessities and have less flexibility to save money.
Housing costs accounted for nearly 40% of the headline CPI gain in November, as the index for shelter increased 0.3% on a monthly basis. Energy prices also rose 0.2% in November after they were unchanged in the prior month.
Food prices were also higher for the month of November, up 0.4% for the month and 2.4% over the last year. The cost of food at home was up 0.5% on a monthly basis and 1.6% compared with a year ago. Food away from home rose 0.3% for the month and was up 3.6% from last year.