MNI DATA ANALYSIS: US November CPI Flat, Core Up 0.2%>

--Overall CPI Slows To +2.2% Y/Y, Core Rises To +2.2% Y/Y 

By Kevin Kastner and Harrison Clarke

     WASHINGTON (MNI) - The CPI data suggest that consumer inflation was 

steady in November, with the headline and core measures in line with 

expectations and the year/year rate for the overall measure down 

slightly from October, data released Wednesday morning by the Bureau of 

Labor Statistics showed. 

     Overall CPI posted a flat reading as expected by analysts, but 

below the 0.3% gain expected by market participants. The core CPI rose 

0.2%, as expected. MNI analysis released Tuesday showed a tendency by 

analysts to accurately predict CPI, with misses to the high side when 

they do miss. Today's data continued that trend. 

     Unrounded, the month/month gain for overall CPI was 0.019%, on the 

high side of the flat reading, and the unrounded increase for core CPI 

was 0.209%, on the higher side of a 0.2% increase. 

--CORE YEAR/YEAR PRICES RISE 

     Overall, the data point to contained consumer inflation, as the 

year/year rate for the overall measure fell while the core measure rose 

only slightly. 

     The year/year rate for overall CPI slowed to 2.2% from 2.5%, while 

the year/year rate for core CPI was up slightly to 2.2% from 2.1% in 

October. 

--OWNERS EQUIVALENT RENTS UP, NEW VEHICLES PRICES FLAT 

     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% for November after a 2.4% rebound in 

October. Gasoline prices declined 4.2% and fuel oil prices fell 2.9%, 

but electricity prices were up 0.3% and gas utilities prices were up 

0.7% to provide some offset. CPI excluding only energy was up 0.2%. 

     Food prices rose 0.2% in November, with food at home prices up 0.2% 

and food away from home prices up 0.3%. 

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

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