**MNI: 5 Things We Learned From The November CPI Data>

By Kevin Kastner, Sara Haire, and Holly Stokes

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

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

Statistics Wednesday: 

     - The overall November CPI came in as expected, but the core was a 

little softer and saw a pullback in its year/year, still allowing the 

Fed to hike gradually with 3-4 increases in 2018. 

     - November CPI +0.4% (+0.386% unrounded), as expected. There is a 

tendency for analysts to miss to the high side for November CPI, but 

they are right just as often, so this falls within the trend. The gain 

was led by +3.9% in energy prices (gasoline +7.3%), as CPI ex. energy 

+0.1%. Food prices were flat. 

     - Core CPI +0.1% (+0.117% unrounded) vs +0.2% expected. Forecasts 

for CPI are usually very accurate, with analysts on target in each of 

the last three years, so the overestimate is a little off trend. 

However, the unrounded figure was on the high side of 0.1%.

     - The y/y rate for headline CPI +2.2% vs +2.0% in October, but 

the y/y rate for core CPI slipped to +1.7% vs +1.8% in October, when it 

was the highest since April.

     - Within the core, owners' equivalents rents +0.2%, lodging away 

from home -1.3%, medical care flat, new vehicles +0.3%, apparel -1.3%. 

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

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