Inflation Remains Within Targets in November
ThinkstockThe Bureau of Labor Statistics is out with its reading on inflation. In November, the Consumer Price Index was -0.3% on the headline, and the core rate, excluding food and energy, rose by 0.1%. Bloomberg and Dow Jones both had…
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The Bureau of Labor Statistics is out with its reading on inflation. In November, the Consumer Price Index was -0.3% on the headline, and the core rate, excluding food and energy, rose by 0.1%. Bloomberg and Dow Jones both had a consensus estimate of -0.2% on the headline and 0.2% for the core rate.
In November, energy prices were down by 4.1%, as gasoline prices were down by 7.4%. Food costs were up by 0.2%.
Here is what investors need to watch closely due to that 2.0% inflation mandate from the Federal Open Market Committee (FOMC): on a year-over-year basis, the nominal CPI was up by 1.8% and the annualized core CPI reading was 1.9% higher. The FOMC did leave a little wiggle room in the CPI reading, up to a sustained expectation of more than 0.5% higher than that 2.0% threshold.
Today’s inflationary data is not likely to be an serious market impact-generation tool, based on how close the numbers are to the consensus estimates.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
