Inflation saw a resurgence in November, as consumer prices increased by 2.7% over the 12 months leading up to November, marking the highest annual rate since July. This data was reported by the Consumer Price Index last week. Monthly price changes also reflected this trend, with a 0.3% increase in November following a 0.2% rise over the previous four months.
Further insights are expected with the upcoming release of new data from the Federal Reserve's preferred inflation measure. In October, the Personal Consumption Expenditures price index showed a 2.3% rise from the previous year, up from the 2.1% pace recorded in September according to Commerce Department figures. Monthly price adjustments mirrored this upward trajectory, with a 0.2% increase in October, matching the gain seen in September.
The services sector played a significant role in driving the monthly inflation increase, with a 0.4% rise in service prices from September. In contrast, goods prices experienced a more modest uptick of 0.1%. Notably, food and gas prices, key factors influencing consumer spending, remained relatively stable during this period.
Elizabeth Renter, a senior economist at NerdWallet, emphasized the ongoing risk posed by inflation, highlighting that the overall inflationary outlook has not shifted significantly. As economic indicators continue to evolve, monitoring inflation trends remains crucial for policymakers and consumers alike.
