MNI ANALYSIS: US November CPI Rises 0.4%, Core Up 0.1%>

--Overall CPI Rises To +2.2% Y/Y, Core CPI Now +1.7% Y/Y Vs +1.8% Oct

By Kevin Kastner, Sara Haire and Holly Stokes

     WASHINGTON (MNI) - The Consumer Price Index rose by 0.4% in 

November, as expected, while core CPI posted a softer-than-expected 

0.1% rise compared with the 0.2% gain expected, data released Wednesday 

by the Bureau of Labor Statistics showed. 

     Unrounded, the month/month rise for core CPI was +0.117%, so it was 

on the high side of 0.1%. Analysts' forecasts for CPI are very 

frequently on target, especially for core CPI, so today's data maintain 

that trend. 

     Overall, the data points to contained core consumer inflation, with 

the year/year rate remaining well below the 2% threshold, allowing the 

FOMC to maintain a very slow pace of policy tightening.

     The year/year rate for overall CPI now stands at 2.2%, up from 

the 2.0% rate in October. For core CPI, the year/year rate slipped to 

1.7% from 1.8% in October, which was the highest point since April. 

     Within core CPI, owners equivalent rents rose 0.2% after a 0.3% 

rise in the previous month, but lodging away from home fell 1.3%. Prices 

of new vehicles were rose 0.3% and used vehicles prices were up 1.0%, 

but apparel prices fell by 1.3%. 

     Energy prices jumped 3.9% in the month, with a 7.3% rebound in 

gasoline prices and a 5.0% rise in fuel oil prices. Excluding only 

energy prices, the November CPI would have been up only 0.1%. 

     Food prices were flat in November, with food at home down 0.1%, but 

food away from home up 0.2%. 

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

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