Inflation in November: where are prices rising the fastest?

Inflation continued to hold him back US economy Rising rents and food prices kept consumer prices painfully high in November.

The Labor Department said Tuesday that the consumer price index, a broad measure of the cost of everyday goods that includes gasoline, groceries and rent, rose 0.1 percent in November from a month earlier. Prices increased by 7.1% per year.

The readings were below Refinitiv economists’ headline reading of 7.3% and the 0.3% monthly growth forecast, a potentially reassuring sign. Federal Reserve as it tries to tame runaway inflation with a series of aggressive interest rate hikes. This marked the lowest annual inflation rate since December 2021.

In another sign that shows the main thing inflationary pressure As the economy begins to slow, core prices, which strip out more volatile measures of food and energy, rose 0.2% in November from a month earlier, down from 0.3% in October. Compared to the same period last year, basic prices increased by 6%.

“The Fed will take some solace in the fact that consumer inflation came down more sharply than expected, but the rate is still very high and services inflation remains sticky,” said Kathy Bostiancic, the nation’s chief economist. “And with wage growth above 5% per year, the Fed will continue to worry about wage-price spirals. A rate cut is not anywhere in the near future.”

Here’s how Americans are seeing the fastest price increases and some of the bailouts from high inflation — as they continue to grapple with the worst sticker shock in a generation:

Food

Prices of eggs, coffee and grain remain high compared to the same period last year. (FOX Business)

Food has been one of the most important reminders of tepid inflation for Americans, with food prices rising 0.2 percent for the month, according to unadjusted figures. On an annual basis, food prices increased by 10.6 percent.

Consumers paid more for a number of everyday staples in November. For example, in the one-month period from October to November, the price of eggs increased by 2.3 percent. Other necessities with price increases include cereals (0.5%), bread (2%), fish and seafood (0.2%), fresh fruits (0.8%), fresh vegetables (0.8%), including tomato (5%) and lettuce (8.9%). %).

Rent

A For Lease sign outside an apartment building in New York’s East Village on Tuesday, July 12, 2022. (Gebby Jones/Bloomberg via Getty Images/Getty Images)

In another worrisome trend that will further squeeze US households, housing costs, which account for about 40% of the increase in core inflation, rose 0.6% over the month. Over the past year, the cost of shelter has increased by 7.1 percent over the previous year, the fastest increase since 1982.

Rising rents are a cause for concern as rising housing prices have a direct and dramatic impact on household budgets.

Another measure, which measures how much homeowners would pay in rent if they didn’t buy their home, rose 0.7 percent in November from a month earlier.

“The cost of housing continues to rise at a rapid pace,” said Jim Baird, CIO of financial advisor Plante Moran. “The rise in home prices last year led to higher rents as demand for housing far outstripped the available supply. The one-two punch of high prices and skyrocketing interest rates has created a headwind for housing. removed, but the lagged effect is still visible. This momentum in house prices is likely to continue into next year before softening.”

Energy

Energy prices remain high compared to the same period last year. (FOX Business)

Last month was a real boon for US households lower gas prices, which decreased by 3.6% in November compared to the previous month. Despite this, gas prices remain 10.1% higher than a year ago.

INFLATION COULD HIT SOME PENSIONERS TWICE

The average price of a gallon of regular gas nationwide on Tuesday was $3.24, according to AAA. That’s a big drop from the record high of $5.01 set in mid-June, and down from a year ago when prices were around $3.33. The price of electricity also decreased by 1.2% in November, but it increased by 13.7% compared to a year ago.

Overall, energy prices fell by 2.5% last month. However, the decline was not extensive: fuel oil rose 1.7 percent in November compared to the previous month, and the annual increase was 65.7 percent.

Cars

Used car prices fell last year, while new car prices rose. (FOX Business)

After months of upward marches, car prices finally began to decline in November.

The the price of new cars November fell 0.1% from October, although unchanged data rose 7.8% year-on-year. However, new truck prices rose 0.2 percent in November and remain 7.1 percent higher than a year ago.

Used car and truck prices, a key component of inflation, also fell 2.8 percent in October from a month earlier. The price of a used car or truck is 3.3 percent lower than a year ago.

Customers browse products at a store in Rosemead, California on June 28, 2022. (Frederick J. Brown/AFP via Getty Images/Getty Images)

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Travel and transportation

An American Airlines Airbus A321-200 takes off from Los Angeles International Airport (LAX), California, USA, March 28, 2018. (Reuters/Mike Blake) (Reuters/Mike Blake/Reuters Photos)

Airline prices fell in November, with prices down 0.6% month-on-month. Tickets are up 36 percent over the past year, according to unadjusted figures.