Reuters – US consumer prices accelerated in November amid a rebound in gasoline prices, but declining healthcare and apparel costs curbed underlying inflation pressures.
The Labour Department said on Wednesday its Consumer Price Index increased 0.4% last month after edging up 0.1% in October. That raised the year-on-year increase in the CPI back to 2.2% from 2% in October.
Last month’s increase in the CPI was in line with economists’ expectations. Excluding the volatile food and energy components, consumer prices ticked up 0.1% as prices for airline fares and household furnishing fell.
The so-called core CPI advanced 0.2% in October. As a result, the annual increase in the core CPI slowed to 1.7% in November from 1.8% in October.
The moderation in the core CPI will likely attract the attention of Federal Reserve officials when they resume a two-day policy meeting on Wednesday. Some Fed officials worry that factors that held down inflation in recent months could prove more persistent. But they could draw some comfort from a report on Tuesday showing a broad increase in producer prices in November.