According to a Commerce Department report that was released on Friday, prices in November were comparatively constant but were still higher than the Federal Reserve’s aim compared to the prior year.
The personal consumption price index which the Fed favours as an inflation measure, recorded a modest increase of just 0.1% from October. This figure indicates an annual inflation rate of 2.4% which surpassed the Fed’s 2% target however, is less than the 2.5% estimation by Dow Jones. In addition to this, the monthly increase was 0.1% point lower than what was anticipated.
When food and energy are excluded, the core PCE also saw a 0.1% rise month-over-month and a 2.8% increase year-over-year. Both the figures were not up to the expectations and were 0.1% points below.
Fed officials generally regard the core reading as a more reliable indicator of long-term inflation trends as it omits the often categories of gas as well as groceries.
The annual core inflation rate was not changed from October while there was a slight uptick of 0.1% point in the overall experience rate. The data also indicates a minimal growth in the price of goods together with a 0.2% increase in service prices.
Gains of 0.2% have been observed in both food and energy prices. Over the past year, there has been a decrease of 0.4% in the prices of goods while services have seen an increase of 3.8%.
Housing inflation is a persistent factor in the economic cycle showing signs of easing in November. The report has also revealed that income and spending figures were quite disappointing as compared to the expectations.
The personal saving rate dipped a bit to 4.4% and following the report, stock market futures remained in negative territory and Treasury yields have also seen a decline.
Subscribe to our newsletter and get top Tech, Gaming & Streaming latest news, updates and amazing offers delivered directly in your inbox.
