The Consumer Price Index for All Urban Consumers (CPI-U) rose by 0.1% on a seasonally adjusted basis in November, reported the U.S. Bureau of Labor Statistics. Year-over-year, prior to seasonal adjustment the all items index rose 7.1%.
The primary factor for the percentage increase seen in November was the rise in the shelter index. In addition, the cost of foodstuffs at grocery stores increased, while energy costs declined over the month.
“The index for shelter was by far the largest contributor to the monthly all items increase, more than offsetting decreases in energy indexes,” explained the Bureau of Labor Statistics in its monthly report.
For American consumers, this means that they paid more for shelter costs and foodstuffs at grocery stores. Despite the fact that inflation decelerated in November, many Americans are finding it challenging to meet their daily needs.
In November, based on the data inflation cooled in the United States. For its part, the Fed is expected to slow its interest rate hikes in December.
(Source: U.S. Bureau of Labor Statistics)
Food
In November, the index for food rose 0.5%. Moreover, foodstuffs purchased from a grocery store (the food at home index) increased 0.5% over the month. Over the last 12-month period, American consumers paid 12% more for food from grocery stores.
Grocery items that were the main contributors to the overall rise in the index included fruits and vegetables, cereal products, bakery products, and nonalcoholic beverages. Conversely, the composite index for meats, poultry, fish, and eggs dropped 0.2%, the index for beef fell 0.8%, and the pork index dropped 0.3%, respectively, in November.
The Price of Gasoline
American consumers paid less for gasoline at the pumps over the month. The price of gasoline declined by 2% in November, after the 4% rise seen the previous month.
In November, prior to seasonal adjustment, the price of gasoline dropped 3.6%.
Year-over-year, the price of gasoline has risen by 10.1%.
(Source: U.S. Bureau of Labor Statistics)
Energy
In November, the index for energy declined 1.6%, largely because of the decrease in the respective prices of gasoline, natural gas, and electricity.
American consumers paid 3.5% less for natural gas, and 0.2% less for electricity over the month.
Since this time last year, the index for energy grew by 13.1%. Year-over-year, the price of fuel oil skyrocketed an astounding 65.7%. In addition, American consumers paid 15.5% more for natural gas and 13.7% more for electricity since this time last year.
All Items Less Food and Energy
In November, the all items less food and energy index edged up 0.2%. Americans continued to pay more shelter themselves, as the index rose 0.6% over the month.
Furthermore, rent prices also increased by 0.8%, and the index for owners’ equivalent rent, which is correlated to the value of housing prices, rose 0.7% over the month.
The US Bureau of Labor Statistics noted that the index for shelter was the primary factor for the monthly rise in the percentage of the all items less food and energy index.
Year-over-year, the all items less food and energy index increased by 6%. Over the last 12-month span, the composite index for shelter rose 7.1%. Additionally, the index for medical care grew by 4.2% and new vehicles cost American consumers 7.2% more since thos time last year.
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Source Cited: https://www.bls.gov/news.release/archives/cpi_12132022.htm
Sarah has been writing on the topics of politics, history and finance for over a decade. She is currently an editor at CPI Inflation Calculator, covering the topics of CPI, inflation, US economy and economic commentary.
