US consumer prices rise at slowest pace since 2021
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The news: US consumer prices rose less than expected in November, but remains above the level policymakers are comfortable with.
The numbers: The US Consumer Price Index (CPI) rose 2.7% year-on-year in November, slowing from 3% in September, according to the Bureau of Labor Statistics (BLS). Economists polled by Reuters and the Wall Street Journal forecast an advance of 3.1%.
Core CPI, which strips out volatile food and energy costs, the core measures of prices over the year increased 2.6%, rising 0.2% over the two months ended November.
The context: While the Labor Department typically releases its inflation data earlier in the month, the November report was delayed due to the US government shutdown which lasted until 12 November. The BLS did not publish an October report as officials weren’t able to collect prices during the shutdown.
The report offers hope that inflationary pressures are softening, however, Fed Chair Jerome Powell warned last week that the CPI data “may be distorted” because of the record-long government shutdown.
The sources: Bureau of Labor Statistics, WSJ, Reuters, Bloomberg
