MNI DATA IMPACT: US CPI Above Fed Target First Since Nov '18>

--US Nov CPI +0.3% m/m, +2.1% y/y, Core Up +0.2%

--Owners Equivalent Rent +0.2%; Energy Prices Up +2.7%%

By Les Commons 

     WASHINGTON (MNI) - The November CPI data were stronger than 

expected, with the year-on-year number rising above the Federal 

Reserve's 2% inflation target for the first time in a year, data 

released Wednesday by the Bureau of Labor Statistics showed. 

     The headline year/year rate rose to 2.1% from 1.8% in October. 

Excluding food and energy, the year/year rate was 2.3%, matching 

October's pace.

     Overall CPI increased 0.3% m/m, above expectations for a 0.2% gain. 

Core prices rose 0.2%, in line with market expectations. Year/year core 

prices were unchanged on October's level, higher by 2.3%.

     Here are some of the key takeaways from the data released Thursday: 

     - The core CPI reading was 0.258% unrounded, just 0.008% above 

being a 0.2% reading. 

     - The large owners' equivalent rent category increased 0.2%, 

bringing the year/year rate up to 3.3%, unchanged from 3.3% in October. 

Tobacco and smoking prices rose 0.8% after a 0.4% fall in October. 

     - Energy prices grew by 0.8%, decelerating from the 2.7% gain in 

October. Gasoline prices, which account for 4.0% of the total CPI 

basket, rose 1.1%, also slowing from 3.7% in October after falling 2.4% 

in September. 

     - Food prices rose 0.1%, but food away from home prices rose by 

0.2%. Excluding only food, CPI would have been up 0.3%, slowing from 

0.4% in October. 

     - Apparel prices steadied in November, after sinking by 1.8% in 

October and recording falls in September and August.                                                                               

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

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