In November, the consumer price index (CPI) increased by 3.1% annually, slightly down from October.
Core CPI, excluding energy and food, remained high at 4.0% annually.
Housing costs contributed significantly to inflation, rising 6.5% annually. (Trending: Tucker Carlson Reveals ‘Secret’ Project He’s Been Working On For Months)
Peter Earle, economist at the American Institute for Economic Research said, “The much smaller year-over-year headline CPI change from October to November (vs. the large decline from September to October) suggests a slowing of disinflation, while the core CPI year-over-year being flat at 4.0% is still substantially elevated at twice the Fed’s target range.”
“The month-to-month headline number being unchanged is to be expected with the AAA’s daily national average gasoline price (regular) having fallen over 70 cents per gallon since mid-September,” Earle continued.
“But the increase in the core CPI on a month-to-month basis — again, if the surveys are correct — is a cause for concern.”
Adding, “Those prices are headed in the wrong direction.”
“I don’t see the Fed hiking again before the end of this year,” predicted Earle.
“But I definitely think that it’s too early to start talking about rate cuts, which is what a lot of economy watchers are already focusing on,” added the economist.
Used car and truck prices increased 1.6% month-to-month, and transportation costs rose by 1.1% for the month.
Energy and apparel prices decreased, contributing to overall inflation reduction.
The Federal Open Market Committee (FOMC) is set to announce the federal funds rate decision, currently at 5.25-5.50%, the highest in 22 years, aiming to address inflation.
Despite sustained above-trend growth in the economy, rising costs have outpaced wage increases since President Biden took office, leading to negative public perception of the economy and concerns about inflation.
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