U.S. Inflation Data Shows 2.7% Rise in November

The U.S. Consumer Price Index (CPI) data for November 2024 shows a moderate increase in inflation, reflecting ongoing price pressures in key sectors.

The CPI for All Urban Consumers (CPI-U) rose by 0.3% on a seasonally adjusted basis, marking a slight acceleration from the previous four months, which saw a consistent 0.2% rise each month. Over the past year, the CPI increased by 2.7%, up from 2.6% in October.

Shelter costs played a major role in the monthly increase, rising by 0.3% and contributing nearly 40% of the total rise. Additionally, food prices also saw a notable increase, with the food index rising by 0.4%. Within the food sector, grocery prices (food at home) grew by 0.5%, while dining out (food away from home) went up by 0.3%.

The energy index rose by 0.2%, reversing the flat performance from October. However, when excluding food and energy, the core CPI rose by 0.3%, continuing a trend from the previous months. Increases were seen in categories such as used cars, medical care, new vehicles, and recreation. Communication costs were one of the few areas to decline.

Over the last year, energy prices fell by 3.2%, while food costs increased by 2.4%. The core CPI, which excludes volatile food and energy prices, rose by 3.3% year-over-year, showing that inflation pressures remain, albeit more contained in certain sectors.

This data suggests that while inflation is stabilizing overall, costs for housing, food, and some services continue to impact consumers.