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MNI BRIEF: US Core CPI Reaccelerates To 0.3% In Nov On Shelter

U.S. CPI rose 0.1% (0.097% unrounded) in November, a tad hotter than market expectations for no change, and core CPI reaccelerated to 0.3% (0.285% unrounded) from 0.2% (0.227% unrounded) a month earlier, in line with expectations, the Bureau of Labor Statistics reported Tuesday.

The data isn't likely to alter expectations for the FOMC to keep rates on hold this week and the door open to hiking again if inflation progress stalls. (See: MNI FED WATCH: On Hold Again As Rate Cut Speculation Builds)

Over the year, CPI slowed a tenth to 3.1% and core CPI was flat at 4.0%. Shelter inflation accelerated a tenth to 0.4%, representing the largest factor in the core index, and boosting the core services CPI gain to 0.5% from 0.3% a month earlier. So-called supercore CPI, or core services excluding owners' equivalent rent and rents, also ticked up two-tenths to 0.4% in November, according to an MNI calculation.

Core CPI is rising at a 3.4% annualized rate over the past three months, unchanged from October. Over the past six months, core CPI has dipped to 2.9% from 3.2% in October.

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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