United States: Inflation rises to highest level in more than two years
December 15, 2016
In November, seasonally-adjusted consumer prices increased 0.2% from the previous month in the United States. The result halved the 0.4% increase in October and marked a four-month low. November’s increase was in line with market expectations and reflected unchanged food prices, while energy prices increased from the previous month. Inflation edged up from October’s 1.6% to 1.7% in November, the highest figure since August 2014.
Core consumer prices, which exclude food and energy prices, also increased 0.2% from the previous month. This was up from October’s 0.1% rise and also in line with market expectations. Core inflation inched down from 2.2% in October to 2.1% in November.
Although the Federal Reserve targets an alternative measure of inflation called the personal consumption expenditures price index, it also follows the core inflation measure closely to judge whether inflationary pressures are increasing in the economy.
Author: Ricardo Aceves, Senior Economist