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- The Consumer Price Index rose 7.1% in November from the same time last year.
- That’s below the 7.3% economists estimated and was the lowest rate since December 2021.
- November’s increase signals that inflation is still cooling.
Inflation continues to cool from its sky-high rates seen throughout 2022.
Inflation as measured by the Consumer Price Index soared 7.1% year-over-year in November, lower than the year-over-year increase of 7.7% in October. That’s according to new data out from the Bureau of Labor Statistics. November’s increase comes in below the 7.3% increase economists surveyed by Bloomberg forecasted, and is the lowest year-over-year rate since December 2021.
Over the month, CPI increased by a seasonally adjusted 0.1% in November, below the 0.3% expected to be seen this month by economists. November’s increase is less than October’s increase of 0.4%.
Looking at just core CPI, which strips out volatile food and energy prices, this measure rose 6.0% year-over-year. That’s just shy of the 6.1% forecasted. Core CPI increased 6.3% in October from the same time a year ago.
Additionally, economists surveyed by Bloomberg expected a month-over-month increase of 0.3% in November for this measure, unchanged from the month before. Core CPI surged 0.2%.
This week’s CPI report comes in just ahead of the Fed’s last meeting of 2022 where the central bank could potentially raise interest rates at a slower pace than the outsize hikes from earlier this year per a speech from Fed Chair Jerome Powell.
Looking forward, inflation may be cooler next year. US Treasury Secretary Janet Yellen recently said on “60 Minutes” that she thinks “inflation will be lower.”
“I am very hopeful that the labor market will remain quite healthy so that people can feel good about their finances and their personal economic situation,” Yellen said.
While Americans have faced rising prices, there has been some recent good news, such as at the gas pump.
“Some relief has been seen from the peaks of inflation, particularly with hugely consequential gasoline prices,” Mark Hamrick, senior economic analyst at Bankrate, stated before the release. “The national average has recently been just pennies a gallon away from year-ago levels. Bargain conscious holiday gift shoppers are finding compelling values on the likes of clothing and consumer electronics.”
However, rising prices are still affecting what shoppers can buy. Hamrick said that “with the costs of necessities so high, consumers are having to forego a good number of discretionary purchases.”
This is a developing story. Please check back for updates.