The Consumer Price Index rose by 0.1% in November as prices increased 7.1%, the smallest 12-month increase since December 2021.
The inflation rate for November 2022 was below expectations, suggesting that consumer prices may be starting to fall in the U.S.
According to the Bureau of Labor Statistics (BLS) Consumer Price Index report released on Tuesday, inflation rose 0.1% in November from the previous month. Over the last 12 months, prices increased 7.1%, the smallest 12-month increase since December 2021.
The index for shelter was by far the largest contributor to the monthly all items increase, BLS reported, more than offsetting decreases in energy indexes.
The food index increased 0.5% over the month with the food at home index also rising at the same rate.
The energy index decreased 1.6% over the month as the gasoline index, the natural gas index, and the electricity index all declined.
BLS noted that the index for all items less food and energy rose 0.2% in November, after rising 0.3% in October. The indexes for shelter, communication, recreation, motor vehicle insurance, education, and apparel were among those that increased over the month.
Indexes which declined in November include the used cars and trucks, medical care, and airline fares indexes.
The all items less food and energy index rose 6.0% over the last 12 months. The energy index increased 13.1% for the 12 months ending November, and the food index increased 10.6% over the last year. BLS reports that all of these increases were smaller than for the period ending October.
The Federal Reserve is set to meet on Wednesday to consider yet another round of interest rate increases, with a 50-basis-point hike on the table for consideration. Raising interest rates has been the Federal Reserve’s approach to combat nearly 40-year high inflation in the U.S.