Consumer Price Index Flat In November

The Consumer Price Index (CPI) was unchanged in November according to the Labor Department. Consumers paid less for cars and gasoline last month and the 12-month inflation reading fell for the second straight month. This gives the Federal Reserve a little more room to help the weak economy if it chooses to do so.

This is “an inflation report that leaves the Fed ample cover for any additional monetary policy accommodation they may see warranted in the New Year,” said Ian Lyngen, a bond strategist at CRT Capital Group in Stamford, Connecticut.

Economists were expecting a slight increase of 0.1% in the CPI after it fell 0.1% in October. For the 12 month period ending in November, prices rose 3.4%. This is down from the three year high of 3.9% back in September and shows that the spike in inflation is subsiding a little bit. Many people see inflation going down even more in the next few months and could convince the Federal Reserve to take more action to lower the nation’s unemployment rate.

The next Fed meeting is in late January and economists believe it is more likely for the Fed enact more measures to help the economy grow.

In November, food prices rose 0.1%. A welcome bit of news came from gasoline prices which fell 2.4%. If you discount food and oil, prices went up 0.2% in November.

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An avid market watcher, Martin enjoys the tech arena the most with the Nasdaq being his main area of focus. A finance major, Martin is working to the goal of one day ringing the bell at the NYSE.
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