United States: Inflation increases in November as Fed prepares rate hike
December 15, 2015
In November, consumer prices were flat over the previous month in seasonally-adjusted terms, which was down from the 0.2% increase seen in October. The print was in line with market expectations and mainly reflects that lower prices for gasoline were offset by higher prices for transport, shelter, and medical services. Record-low oil prices are helping boost economic activity but keeping a lid on prices at the gas pump.
Inflation came in at 0.5%, which was up from October’s 0.2% reading and marked the highest result this year. Core consumer prices, which excludes food and energy prices, increased 0.2% for the third consecutive month. The figure was also in line with market expectations. Annual average core inflation in November held at October’s 1.8%.
Author: Carl Kelly, Economist