A report released by the Labor Department on Thursday showed a modest increase in U.S. consumer prices in the month of November.
The Labor Department said its consumer price index rose by 0.2 percent in November after coming in unchanged in October. The uptick in consumer prices matched economist estimates.
The modest increase in consumer prices was broad-based, with no component accounting for more than a quarter of the increase.
The report said food prices edged down by 0.1 percent in November after rising by 0.2 percent in October, while energy prices climbed by 0.4 percent after inching up by 0.1 percent.
Excluding food and energy prices, core consumer prices still edged up by 0.2 percent in November after showing no change in the previous month. Economists had expected core prices to inch up by 0.1 percent.
The uptick in core prices reflected higher prices for lodging away from home, household furnishings and operations, recreation, apparel, airline fares, and motor vehicle insurance.
Meanwhile, the report said prices for used cars and trucks, medical care, and new vehicles all declined over the month.
The report said the annual rates of growth in consumer prices and core consumer prices were unchanged from the previous month at 1.2 percent and 1.6 percent, respectively.
“Today’s continued benign inflation readings support our call that Fed will not lift rates from the effective lower bound until mid-2024,” said Kathy Bostjancic, Chief U.S. Financial Economist at Oxford Economics.
On Friday, the Labor Department is scheduled to release a separate report on producer price inflation in the month of November.
The material has been provided by InstaForex Company – www.instaforex.com