November CPI report reveals inflation remains on downward trend
On a seasonally-adjusted basis, overall consumer prices rose 0.1 percent in November, with the overall consumer price index (CPI) falling to 3.1 percent year-over-year. NAFCU Vice President of Research and Chief Economist Curt Long analyzed the data in a new Macro Data Flash report.
“November inflation data came in slightly above expectations but remained in a downward trend,” said Long. “On a year-over-year basis, core CPI growth dropped to 4 percent, the slowest growth rate since August 2021. Areas that surprised to the upside included shelter and used cars, but those should be one-offs as private data on apartment rents and wholesale vehicle prices suggest that further disinflation is in store. Used car prices increased by 1.6 percent, breaking a string of five consecutive months of price declines. New vehicle prices fell for the second straight month. Clothing prices are trending down sharply; besides the first months of COVID-19, the 1.3 percent decline in November was the largest monthly drop since 2018.”
Core prices (excluding food and energy costs) rose 0.2 percent last month. Year-over-year core CPI growth was 4 percent. Energy prices decreased 2.3 percent during the month. From a year ago, energy prices were down 5.4 percent. Food prices rose 0.2 in November and were up 3 percent over the year.
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