Inflation cools further in November as energy prices fall, housing costs remain sticky

 

US Inflation Chart

    

Headline inflation in the United States cooled further in November, dropping to its lowest level in over a year, according to data released by the Bureau of Labor Statistics (BLS). The Consumer Price Index (CPI) for All Urban Consumers rose 7.1% year-over-year in November, down from 7.7% in October and the highest level since January 1982.

The decline in inflation was driven primarily by a sharp drop in energy prices, which fell 2.5% month-over-month in November. Gasoline prices, which had been climbing steadily in the first half of the year, fell by 6.0% in November. Other energy prices, such as oil and gas, also declined in November.

Core inflation, which excludes the more volatile food and energy prices, rose 0.2% month-over-month in November, up from 0.1% in October. The core CPI is now up 6.0% year-over-year, down from 6.3% in October.

Housing costs, which account for about one-third of the CPI, continued to rise in November. The rent index rose 0.8% month-over-month in November, while the owners' equivalent rent index rose 0.6%. Housing costs have been rising steadily throughout the year, and are now up 7.1% year-over-year.

Food prices also continued to rise in November, but at a slower pace than earlier in the year. The food index rose 0.5% month-over-month in November, down from 0.6% in October. Food prices are now up 12.0% year-over-year, down from 12.4% in October.

The decline in inflation is a welcome relief for consumers who have been facing rising prices for months. However, it is too early to say whether this is the beginning of a sustained decline in inflation. The Federal Reserve is expected to continue raising interest rates in the coming months in an effort to slow down the economy and curb inflation.

Here are some of the key takeaways from the November inflation data:

• Headline inflation fell to 7.1%, its lowest level in over a year.
• Core inflation rose to 6.0%, but remains below its peak of 6.3% in October.
• Housing costs continued to rise, up 7.1% year-over-year.
• Food prices rose 12.0% year-over-year, down from 12.4% in October.
• The Federal Reserve is expected to continue raising interest rates in the coming months.

It is important to note that the inflation rate can vary depending on the specific goods and services that are included in the CPI. For example, the inflation rate for food is likely to be higher than the inflation rate for clothing. Additionally, the inflation rate can vary from region to region.

Consumers should be aware of the rising costs of goods and services and adjust their budgets accordingly. They may also want to consider alternative methods of saving money, such as shopping around for the best deals and using coupons.