14 December 2001, 16:40 US Nov CPI unchanged from Oct; core rate up 0.4 pct
WASHINGTON (AFX) - Consumer prices, as measured by the CPI price
index, were unchanged in November, the Labor Department said.
The core rate, which excludes volatile energy and food prices,
increased 0.4 pct. The rise in the core rate is the strongest gain
since Jan 1996.
Headline CPI was in line with economists forecasts while the rise
in the core rate was stronger than expected. The consensus forecast of
Wall Street economists was for the core rate to rise by 0.1 pct.
On a year-on-year basis, the CPI rose 1.9 pct and the core rate
increased 2.8 pct.
In October, the CPI was down 0.3 pct, while the core rate was up
0.2 pct.
Over the first eleven months of the year, the CPI is running at a
1.9 pct annual rate, down from a 3.5 pct rate over the first eleven
months of last year.
The core rate is running at a 2.9 pct pace over the first eleven
months of the year, up from a 2.6 pct rate over the same period in
2000.
Sharp declines in energy costs weighed down headline CPI. In
November, energy prices fell 4.4 pct.
The complex was led down by gasoline, fuel oil, and natural gas
price declines.
Gasoline prices fell 10.1 pct, while fuel oil prices fell 4.1 pct
and natural gas prices fell 2.6 pct.
The fall in natural gas prices is the largest since January.
Electricity prices declined 1.0 pct during the month.
Food prices declined 0.1 pct, largely on the back of poultry and
fresh vegetable price falls which declined 1.9 pct and 1.7 pct
respectively.
The rise in the core rate in November was led by a 3.9 pct rise in
tobacco and smoking products prices and a 0.7 pct rise in hospital
services costs.
The rise in hospital services costs is the largest since Aug 2000.
A 0.6 pct rise in new vehicle prices also helped lift the core rate
in November. The increase in new vehicle prices is the largest since
Jan 1991.
Shelter and housing prices, which both rose 0.4 pct, also
contributed to the gain in the core rate.
However, a decline in transportation costs and airline fares offset
the contributing gains to the core rate.
Transportation prices fell 1.5 pct in November, dragged down by a
2.7 pct decline in airline fares.
The decline in airline fares marks the sharpest fall in the segment
since Oct 2000.
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