Consumer Prices Surge in November

Washington, DC, December 14, 2007--Consumer prices rose by the largest amount in more than two years in November, the Labor Department said.

The Consumer Price Index rose 0.8% last month, the largest increase in one month since a 1.2% surge in September 2005 after Hurricane Katrina.

Core inflation, which excludes energy and food, rose by 0.3% last month, the biggest increase in 10 months.

The 0.8% rise in consumer prices was worse than the 0.6% advance that economists had expected. With one month to go, inflation in 2007 is rising at an annual rate of 4.2%, far above the 2.5% increase in 2006.

Energy costs were up 5.7% in November, with gasoline prices rising by 9.3%, the biggest increase since May.