WASHINGTON—On a seasonally-adjusted basis, overall consumer prices increased 0.3% in November following a 0.4% rise in October.
NAFCU Chief Economist and Vice President of Research Curt Long attributed the growth mainly to increased energy and shelter prices.
"Energy is still 0.6% below its year-ago level, but has risen for two consecutive months," said Long. "Price indexes for new vehicles and airline fares also fell in November while used car prices continued to rise, increasing 0.6% in November following a 1.3% gain in October.
"…Overall, unless inflation greatly differs from the Fed's forecasts, the next Fed rate hike looks to be a long way off," he concluded.
Rates Hold Steady
As CUToday.info reported, the Federal Open Market Committee, the Fed's monetary policy-setting arm, concluded its last meeting of 2019 by holding the federal funds target rate at its current 1.5% to 1.75%. Read more about the committee's decision and updated economic projections.
The Bureau of Labor Statistics reported the overall consumer price index (CPI) grew 2% over the 12-month period. Core prices (excluding food and energy costs) increased 0.2% in November compared to the previous month. Year-over-year core CPI growth was 2.3%.
Energy prices also rose in November, increasing 0.8%. From a year ago, energy prices were down 0.6%. Food growth was up 2% on a year-over-year basis after rising 0.1% in November, Long said.