Free Trial

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 ** 
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.