The cost of living for Americans rose less than expected in November, as the higher prices of commodities like fuel are not making an impact on the price of everyday goods and services.
The Labor Department said Wednesday that the consumer price index increased 0.1 percent last month, following a 0.2 percent rise in the previous month. Economists had been looking for a rise in November of 0.2 percent.
The core prices, which exclude the more volatile energy and food components, also rose 0.1 percent, in line with the economist consensus.Energy prices rose 0.2 percent in November, while food prices also increased 0.2 percent, due to the higher costs for meats and cereals.
Large retailer have been cutting back on prices to increase consumer traffic heading into the holiday season.
The CPI continues to be held down by the low rents, which account for roughly 40 percent of core consumer prices. The cost of rent continues to be an issue with foreclosures bringing more houses to the market.
The Labor Department added that the cost of medical care increased 0.1 percent last month, while new-car prices declined 0.4 percent, tobacco costs fell 0.1 percent. Air fares increased 3 percent in November.
“Longer-term inflation expectations have remained stable, but measures of underlying inflation have continued to trend downward,” Fed officials said yesterday.
The cost of living for Americans rose less than expected in November, as the higher prices of commodities like fuel are not making an impact on the price of everyday goods and services.
The Labor Department said Wednesday that the consumer price index increased 0.1 percent last month, following a 0.2 percent rise in the previous month. Economists had been looking for a rise in November of 0.2 percent.
The core prices, which exclude the more volatile energy and food components, also rose 0.1 percent, in line with the economist consensus.Energy prices rose 0.2 percent in November, while food prices also increased 0.2 percent, due to the higher costs for meats and cereals.
Large retailer have been cutting back on prices to increase consumer traffic heading into the holiday season.
The CPI continues to be held down by the low rents, which account for roughly 40 percent of core consumer prices. The cost of rent continues to be an issue with foreclosures bringing more houses to the market.
The Labor Department added that the cost of medical care increased 0.1 percent last month, while new-car prices declined 0.4 percent, tobacco costs fell 0.1 percent. Air fares increased 3 percent in November.
“Longer-term inflation expectations have remained stable, but measures of underlying inflation have continued to trend downward,” Fed officials said yesterday.
