Dec. 12 (UPI) — Consumer prices climbed slightly in November, according to data released by the Labor Department on Tuesday.
The consumer price index, or CPI, rose 0.1% in November, climbing 3.1% from year-ago levels, in data that will be closely watched by the Federal Reserve as it weighs its next interest rate decision.
The 3.1% annual increase was in line with estimates by Dow Jones economists who had forecast that CPI would remain flat as it did in October.
The annual rate was, however, below a 3.2% rise reported in October
November’s minimal price rise was aided by significant dips in gasoline and other energy costs. For example, the Labor Department said gasoline prices fell 8.9% from last year, fuel oils tumbled 24.8% and piped gas service dropped 10.4%.
The prices of all items minus the more volatile food and energy indexes, another key indicator watched by the Federal Reserve, increased 4% on the year on par with increases in October.
“The index for shelter continued to rise in November, offsetting a decline in the gasoline index,” the Labor Department said. “The energy index fell 2.3% over the month as a 6.0% decline in the gasoline index more than offset increases in other energy component indexes.
“The food index increased 0.2% in November, after rising 0.3% in October. The index for food at home increased 0.1% over the month and the index for food away from home rose 0.4%.”
The food index, one of the indexes most noticed by customers daily, increased 0.2% over the past year and 0.3% since October.
“Four of the six major grocery store food group indexes increased over the month,” the Labor Department said. “The index for cereals and bakery products rose 0.5% in November after rising 0.2% in October. The fruits and vegetables index increased 0.3% over the month, and the nonalcoholic beverages index rose 0.5% in November.
“The index for dairy and related products increased 0.1% over the month. The meats, poultry, fish, and eggs index decreased 0.2% in November as the indexes for pork, chicken, and beef all declined.”
