Consumer price growth was a little hotter than expected in November, according to the latest data from the Bureau of Labor Statistics.
- M-O-M: Consumer prices rose 0.1% in November, higher than the 0% reported in October but the second lowest level all year.
- Y-O-Y: Annual consumer price growth slowed to 3.1% in November, down from 3.2% in October and the lowest level since June.
Slight Miss. Economists were projecting the prices would hold for the second straight month. However, year-over-year they were spot on.
Food & Energy. Food prices continue to slow with year-over-year price growth dropping to 2.9% in November, down from 3.3% in October and the lowest since June 2021.
- Groceries are now below the target rate at 1.7% while food away from home is still elevated at 5.3% but that is the lowest level since October 2021.
- Energy prices have now fallen for the second straight month with prices down 5.4% year-over-year thanks to gasoline prices falling 8.9% when compared to the same time last year.
Core. The index for all items less food and energy rose 0.3% in November, exactly as economists were expecting, which kept the year-over-year index at 4.0%.
- Shelter costs rose 0.4% in November which was higher than October’s 0.23% rise but it did slow year-over-year growth to 6.5% which is the lowest level since August 2022.
- The repot noted that the shelter index was the largest factor in the monthly increase
The South. Consumer prices in the South actually fell 0.2% from October which slowed the annual index down to 3.4% in November, the lowest level since July. The core index also remained elevated at 4.4% year-over-year. However, that was the lowest since May 2021.
- The energy index fell 3.9% in November, primarily due to a 7.3% drop in the gasoline index.
- Food prices were unchanged from October which slowed the overall index down to 3.2% year-over-year
- Shelter costs remain extremely elevated with index at 7.3% in November.