Consumer price inflation rose slightly in November 2024 at 2.7% annually, compared with 2.6% in October 2024. Monthly prices rose 0.3% from October, according to data released by the Bureau of Labor Statistics (BLS) on Wednesday, Dec. 11.
Core inflation, which removes more volatile food and energy prices, rose 3.3% annually and 0.3% compared with October. Both headline and core inflation came in line with expectations, according to FactSet. However, the rate of inflation has ticked up slightly in the last two reports.
The cost of shelter rose 4.7% annually and 0.3% since October. Shelter accounts for nearly 40% of monthly inflation, BLS reported.
Meanwhile, the food index rose just 2.4% annually and ticked up 0.4% since October. Food at home, or groceries, rose 0.5% compared to October.
The overall energy index fell 3.2% as the price of energy services dropped 19.5% annually. The price of used vehicles fell 3.4% compared with the same month last year.
The Federal Reserve’s dual mandate is to control price inflation and maintain full employment. Inflation has yet to hit its target of 2%. The U.S. jobs market beat expectations in November, adding 227,000 jobs after a disappointing October report. Meanwhile, the unemployment rate notched up to 4.2% from 4.1%.
The latest inflation report comes a week before the Federal Open Market Committee sets monetary policy. The federal funds rate now sits at 4.5% to 4.75%. The Fed is expected to cut rates by 25 basis points in December 2024. That would mark the third rate cut of 2024.
