U.S. Consumer Prices Rise Slightly in November
Rising Shelter Costs Offset Declines in Energy Prices
The Consumer Price Index for All Urban Consumers (CPI-U) in the United States rose by a modest 0.1 percent in November on a seasonally adjusted basis, following an unchanged figure in October, as reported by the U.S. Bureau of Labor Statistics. This slight increase is primarily attributed to rising shelter costs, which counterbalanced declines in energy prices, particularly gasoline. Over the past year, the all items index has seen an increase of 3.1 percent before seasonal adjustment.
The shelter index, which includes costs for rent and owners' equivalent rent, continued its upward trajectory in November. This rise in shelter costs played a significant role in the overall increase in the CPI-U. Conversely, the energy index fell by 2.3 percent in the same month, driven by a 6-percent decrease in the gasoline index, which more than offset increases in other energy components like natural gas and electricity.
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Food prices also showed a slight increase of 0.2 percent in November, following a 0.3 percent rise in October. The food at home index edged up by 0.1 percent, while the index for food away from home saw a more substantial rise of 0.4 percent. The food index's annual increase stood at 2.9 percent, with notable rises in the indexes for cereals, bakery products, fruits, vegetables, and nonalcoholic beverages.
Increase across multiple categories
The index for all items less food and energy, a key measure of the core inflation rate, rose by 0.3 percent in November, slightly higher than the 0.2 percent increase in October. This rise reflects increases in various categories, including medical care, motor vehicle insurance, and rent. However, there were decreases in other categories such as apparel, household furnishings, communication, and recreation.
On an annual basis, the all items index rose by 3.1 percent, a slight deceleration from the 3.2-percent increase in the 12 months ending October. The all items less food and energy index, on the other hand, maintained a 4.0 percent increase over the past year. The energy index, influenced by the significant decrease in gasoline prices, fell 5.4 percent over the 12-month period.
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In terms of specific food categories, the food at home index rose by 1.7 percent over the last year, with varying changes across different food groups. The index for food away from home showed a more substantial increase of 5.3 percent over the same period.
The energy sector experienced an overall decrease, with the energy index falling by 5.4 percent over the past year. This decline was led by significant drops in the indexes for gasoline, natural gas, and fuel oil, despite a rise in the electricity index.
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