News

Consumer prices increased 0.3% over the month and 2.7% over the year in November, rising from the 2.6% over-the-year increase in October. Core CPI, which excludes more volatile energy and food prices, stayed the same at a 3.3% over-the-year increase and rose 0.3% over the month, which has been the monthly increase for four consecutive months.

Shelter increased 0.3% over the month and 4.7% over the year in November, the smallest 12-month increase since February 2022 but still accounted for nearly 40% of the monthly increase of the all-items index. On the other hand, food price increases have picked back up, rising 0.4% over the month and 2.4% over the year in November. Prices for transportation services leveled out over the month, not rising at all, but are still up 7.1% over the year, with motor vehicle insurance increasing 12.7% over the year.

Energy costs increased 0.2% in November but fell 3.2% over the year. While energy commodity prices are down 8.5% over the year, electricity prices are up 3.1%.

Although the over-the-year headline rate ticked up from the previous month, markets are still anticipating a 25-basis-point rate cut at the Federal Open Market Committee’s meeting this week. However, slowing progress on inflation might upend the Federal Reserve’s previous easing plans for 2025, pointing to the possibility of the FOMC’s interest rate target being cut at a slower pace, but the market still anticipates rate cuts in 2025.