Inflation meets expectations as energy prices fall, housing costs rise

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Consumer prices met expectations in November as a drop in energy prices dragged down headline inflation, according to the latest data from the Bureau of Labor Statistics released Tuesday morning.

The Consumer Price Index (CPI) — the final reading released in 2023 — showed prices ticked up slightly at 0.1% over last month and rose 3.1% over the prior year in November, a slight deceleration from October’s 3.2% annual gain in prices.

Economists had expected prices to come in flat month-over-month and rise 3.2% year-over-year, according to data from Bloomberg.

As expected, lower energy costs held the headline figures to a smaller gain with energy prices dropping 2.3% month-over-month, driven by lower gas prices, which dropped 6.0% during the month of November.

On a “core” basis, which strips out the more volatile costs of food and gas, prices in November climbed 4.0% over last year — matching the annual increase seen in October, according to Bloomberg data. Monthly core prices climbed 0.3%, slightly higher than October’s 0.2% monthly rise.

Economists had expected core prices to come in at those levels.

Federal Reserve Chairman Jerome Powell is introduced at the Jacques Polak Research Conference at the International Monetary Fund, Thursday, Nov. 9, 2023, in Washington, D.C. November’s inflation report is one of the most important data points the Federal Reserve will consider in its next interest rate decision. (Mark Schiefelbein/AP Photo, File) (ASSOCIATED PRESS)

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

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