Easing pressure from the Federal Reserve, prices across the board were within expectations, ending November with a 3.1 percent annual inflation rate, reports CNBC. The consumer price index, a common tool to identify inflation, increased by 0.1 percent in November, compared to the month before.
November’s monthly rate was only slightly above the flat consumer price reading in October and signals a gradual decline from October’s annual rate of 3.2 percent.
The report was “somewhat in line, although, I suppose not as good as what some might have hoped, that we would start to see more deceleration on a month-over-month basis,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. The Fed “will probably talk about continued disinflation being good news.”
Food prices in November increased by 0.2 percent compared to the previous month, bolstered by a 0.4 percent surge in food away from home. Annually, food prices rose 2.9 percent.
“The November CPI demonstrates that the inflation rate for food-at-home continues to head in the right direction for American consumers, dropping to 1.7 percent on a year-over-year basis,” said VP of tax, trade, sustainability, and policy development of the Food Industry Association Andy Harig, in a statement on the recent inflation data. “But even as inflation gets back on par with historical averages, consumers must remain flexible and tactical with their purchasing decisions to get the greatest value as we head into the holiday season.”
The release comes as the Fed meets to discuss policy. During this time, it is expected to hold interest rates steady, according to CNBC. Full Story
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