The U.S. Labor Department published a much-anticipated report on Wednesday, indicating that consumer prices rose in November, aligning with economists' predictions. According to the report, the consumer price index (CPI) increased by 0.3 percent in November, following a 0.2 percent rise each month for the past four months, meeting market forecasts.
Year-on-year, consumer prices experienced a slight uptick in growth, reaching 2.7 percent in November from 2.6 percent in October, again reflecting market expectations. Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, noted, "The headline CPI consistently exceeded 3% earlier this year and is now steadily below that mark. Despite the monthly volatility, we anticipate that the Federal Reserve will remain focused on their easing strategy."
The monthly price increase was partially driven by an uptick in shelter costs, which rose by 0.3 percent, contributing to nearly forty percent of the increase in the headline index. Additionally, food prices increased by 0.4 percent, and energy prices saw a modest 0.2 percent rise.
Even when food and energy prices were excluded, core consumer prices still climbed by 0.3 percent in November, in line with the previous three months and market predictions. The Labor Department reported that core consumer prices surged by 3.3 percent compared to November of the prior year, a rate unchanged from October and consistent with forecasts.
The rise in core prices was influenced by higher shelter costs, as well as increased prices for used cars and trucks, household furnishings and operations, medical care, new vehicles, and recreational activities.
Looking ahead, the Labor Department is set to release another report on Thursday focusing on producer price inflation for November. It is anticipated that the producer price index (PPI) will rise by 0.3 percent following a 0.2 percent increase in October, with the annual growth rate expected to climb to 2.6 percent from 2.2 percent.
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