November Inflation Rises as American Consumer Spending Increases, Key Measure Reveals
In November, inflation in the United States showed a slight increase while consumer spending rose. The Federal Reserve’s preferred inflation gauge revealed that consumer prices rose by 2.8% compared to the same month last year.
Details of November Inflation Data
The Commerce Department reported these figures on Thursday. In comparison, October’s annual inflation rate was 2.7%. When excluding the volatile categories of food and energy, core prices also edged up by 2.8% year-over-year, which is a minor rise from 2.7% in October.
Monthly Inflation Trends
On a month-to-month basis, overall inflation increased by 0.2% in November from October. Core inflation also experienced the same monthly increase, showing a steady but gradual change. At this rate, inflation could trend closer to the Federal Reserve’s target of 2% over time.
Economic Growth in Recent Quarters
Furthermore, the government announced that the economy grew at an impressive annual rate of 4.4% during the July to September quarter. This growth rate marks the fastest expansion seen in two years.
Key Takeaways
- November consumer price inflation rose by 2.8% year-over-year.
- Core prices also increased by 2.8%, slightly up from 2.7% in October.
- Monthly inflation for both overall and core categories was 0.2% from October to November.
- The economy expanded at a 4.4% annual growth rate for July-September.
While inflation has significantly decreased from its peak in 2022, it has largely stabilized over the last two years. The delayed release of the data was attributed to a six-week government shutdown last fall.
