Last Update: 14-Dec-12 08:44 ET
Inflation Trends Continue to Weaken as Energy Prices Tumble
Consumer prices declined 0.3% in November after increasing 0.1% in October. The Briefing.com consensus expected the CPI to decline 0.2%. The CPI report follows the trends in yesterday's data for producer prices. Energy prices, which ramped up in August and September, have now fallen for the last two months. These prices dropped 4.1% in November as gasoline prices declined 7.4%. Food prices increased 0.2% for the second consecutive month. Since September, food prices have increased 0.6% after increasing only 0.8% from September 2011 through September 2012. It seems that some of the negative price effects from this summer's drought are starting to pass through to consumers. This means that food prices will likely continue to trend higher until next harvest. Excluding food and energy, core prices rose 0.1% in November, down from a 0.2% gain in October and exactly what the consensus expected. There were no unusual price shifts in November. Nothing in the data suggests that core price trends will shift from their current slow pace any time soon.
Consumer prices declined 0.3% in November after increasing 0.1% in October. The Briefing.com consensus expected the CPI to decline 0.2%. The CPI