**MNI 5 THINGS: US Nov CPI As-Expected Flat,Core +0.2%>

--5 Things We Learned From The November CPI Data

By Kevin Kastner and Harrison Clarke

     WASHINGTON (MNI) - The following are the key points from the 

Consumer Price Index data for November released by the Bureau of Labor 

Statistics Wednesday: 

     - November CPI as flat month/month overall on a plunge in energy 

prices, exactly as expected by analysts, but well below the 0.3% gain 

expected by market participants, which could give some 

inflation-watchers some relief ahead of next week's FOMC meeting. Still, 

the FOMC is likely to correctly view the flat reading as energy-led and 

the core as modestly rising with an as-expected 0.2% increase.  

     - As a result of the flat reading for overall CPI, the year/year 

rate slipped back to +2.2% from +2.5%. Before rounding, the month/month 

gain was +0.019%, slightly on the high side of flat. The year/year rate 

for core prices rose slightly to +2.2% from +2.1%. 

     - Core CPI was +0.209% unrounded, so just slightly on the high side 

of +0.2%, with the major components mixed. The large owners' equivalent 

rents category rose 0.3%, medical care was up 0.4% and used vehicle 

prices rose 2.4%. However, apparel prices fell 0.9% and new vehicle 

prices were flat. 

     - Energy prices fell by 2.2% in November after a 2.4% surge in 

October, with gasoline prices down 4.2%, but electricity prices up 0.3% 

and gas utilities prices up 0.7%. CPI excluding only energy was up 

0.2%, while food prices were up 0.2% on widespread gains. 

     - MNI analysis showed analysts are fairly accurate when predicting 

both overall and core CPI, so today's data maintain that trend.

     ** MNI Washington Bureau: 202-371-2121 ** 

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