Consumer inflation increased by 0.1 percent in November according to the latest read of the Consumer Price Index, advancing 7.1 percent over the 12 months ending in November. The core CPI number — which excludes volatile food and energy indexes — advanced 0.2 percent month-over-month for an annual core inflation rate of 6.0 percent.
CPI for all items rises 0.1% in November as shelter and food increase https://t.co/dJyJeKlXDJ #CPI #BLSdata
— BLS-Labor Statistics (@BLS_gov) December 13, 2022
The report showed inflation in November was weaker than Wall Street estimates that expected to see a monthly increase of 0.3 percent for an annual inflation advance of 7.3 percent.
Price increases in November were led by shelter — up 0.6 percent month-over-month — the index for which was "by far the largest contributor to the monthly all items increase," according to the Bureau of Labor Statistics, while the food index advanced 0.5 percent on the month.
The final consumer inflation report to be released in 2022 also provides a look back at how much more expensive goods and services have gotten in the last year under President Joe Biden's "build back better" economy.
Annual increases in food show groceries became 12.0 percent more expensive with costs for eggs increasing 49.1 percent, bread jumping 15.7 percent, butter increasing 27 percent, cereals and bakery products rising 16.4 percent, and milk rising 14.7 percent.
The energy index is up 13.1 percent in the last 12 months, driven by a 65.7 percent increase in fuel oil costs, 13.7 percent higher electricity costs, 15.5 percent increase in piped natural gas, and 10.0 percent advance in gasoline prices. Biden, of course, is still taking a Quixotic victory lap on lowering prices which is...just not true.
Apparel costs advanced 3.6 percent in the last 12 months while new vehicles are 7.2 percent more expensive and rent costs increased 7.9 percent while the owners' equivalent rent of residences jumped 7.1 percent.
Owners’ equivalent rent (OER) component of CPI is still flying, up 7.1% y/y in November pic.twitter.com/HX9lb158yv
— Liz Ann Sonders (@LizAnnSonders) December 13, 2022
Meanwhile, transportation services have seen an annual advance of 14.2 percent with an 11.7 percent increase in car maintenance and repair services, 13.4 percent increase in car insurance, and 36.0 percent increase in airline fares.
November's Consumer Price Index read follows last week's Producer Price Index (PPI) report — covered by Townhall here — that showed inflation upstream from consumers continued to surge past Wall Street estimates and suggesting that consumer inflation is set to continue rising despite still being at an economically horrific 7+ percent year-over-year rate.
All eyes now turn to the Federal Reserve and its Chairman Jerome Powell as they prepare to decide how much to increase interest rates ahead of Wednesday afternoon's scheduled announcement. Already, the Fed has raised rates to their highest level since 2008 as Powell fights to tame inflation and bring it back down to a goal of just two percent by strangling the life out of the economy at the cost of more pain for Americans.
Analysts hope to see a slight tempering to the Fed's increases that at previous meetings saw consecutive 75 basis point hikes, with a 50 basis point increase expected from the Fed on Wednesday afternoon.