U.S. Consumer Prices Increased 0.3% in November
December 11 2019 - 09:00AM
Dow Jones News
By Sarah Chaney and Harriet Torry
WASHINGTON-U.S. consumer prices rose moderately in November,
signaling inflation remains in check despite historically low
unemployment and tariffs on Chinese imports.
The consumer-price index-which measures the costs of everyday
goods and services from clothing to dental care-rose a seasonally
adjusted 0.3% in November from the previous month, the Labor
Department said Wednesday. A rise in energy and rent prices were
key factors pushing up overall inflation during the month.
Core prices, which exclude the often volatile food and energy
categories, increased 0.2%, in line with the previous month.
The consumer-price index climbed 2.1% in November from a year
earlier, up from October but still tame. Core prices were up 2.3%
over the year, matching the previous month's annual rise.
The U.S. placed levies on a range of Chinese imports in
September as part of the U.S.-China trade war. Those tariffs don't
appear to be having an inflationary impact yet. Prices for apparel,
for instance, rose only 0.1% in November, while prices for toys
fell 1.1%.
A separate Labor Department report released Wednesday showed
U.S. inflation-adjusted wages were unchanged in November, as
consumer prices outpaced average hourly earnings.
The inflation figures are unlikely to sway the Federal Reserve's
interest rate decision, which the central bank will announce in a
statement later today. Fed officials lowered their short-term
benchmark rate three times this year but have indicated they are
prepared to hold rates steady.
The Federal Reserve follows the consumer-price index for clues
about the trajectory of inflation, though the central bank's
inflation target of 2% is tied to a separate measure, the Commerce
Department's price index for personal-consumption expenditures. The
consumer-price index tends to run a bit higher than the
personal-consumption index, but both gauges generally follow the
same path.
Rather than holding at its 2% target, PCE inflation has softened
this year. The price index for personal-consumption expenditures,
the Federal Reserve's preferred gauge for inflation, rose 1.3%
year-over-year in October, the same rate as in September.
Write to Sarah Chaney at sarah.chaney@wsj.com
(END) Dow Jones Newswires
December 11, 2019 08:45 ET (13:45 GMT)
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