November Consumer Prices Rose 0.3% from Oct., Up 2.7% YOY

Washington, DC, December 11, 2024-The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% on a seasonally adjusted basis in November, after rising 0.2% in each of the previous four months, the U.S. Bureau of Labor Statistics reported. 

Over the last 12 months, the all-items index increased 2.7% before seasonal adjustment.

The index for shelter rose 0.3% in November, accounting for nearly 40% of the monthly all-items increase. The food index also increased over the month, rising 0.4% as the food at home index increased 0.5% and the food away from home index rose 0.3%. The energy index rose 0.2% over the month, after being unchanged in October.

The index for all-items less food and energy rose 0.3% in November, as it did in each of the previous three months. Indexes that increased in November include shelter, used cars and trucks, household furnishings and operations, medical care, new vehicles, and recreation. The index for communication was among the few major indexes that decreased over the month.

The all-items index rose 2.7% for the 12 months ending November, after rising 2.6% over the 12 months ending October. The all-items less food and energy index rose 3.3% over the last 12 months. The energy index decreased 3.2% for the 12 months ending November. The food index increased 2.4% over the last year.

“Inflation picked up in November, a sign that the path to bringing down price pressures remains bumpy.

“The consumer-price index rose 2.7% from a year earlier, the Labor Department said Wednesday, after rising 2.6% in October. Core prices, which exclude volatile food and energy items, climbed 3.3% over the previous 12 months.

“The CPI index rose 0.3% from the prior month, the strongest month-over-month increase since April. The increase was driven by persistent inflationary pressures in the cost of food, vehicles and medical care.

“The pace of housing-cost increases cooled slightly from the prior month, which economists said was a welcome development. But they voiced concerns about persistent inflation in the services sector, which makes up the lion’s share of U.S. economic activity. Core goods inflation also picked up from the prior month, led by a jump in vehicle prices.  

“‘Overall we’re looking at an environment where the low-hanging fruit has been picked and it’s getting harder and harder to make further inroads into reining in inflation,’ said Sarah House, senior economist for Wells Fargo.

“‘Now we’re getting to a point where you really need the demand side of the economy to weaken,’ she said. ‘That’s what makes the last mile so hard.’”