Consumer prices in the US continue to show why the Fed isn't worried about inflation one bit
Consumer prices in the US continue to show why the Fed isn't worried about inflation one bit. Headline CPI dropped 0.3% in November, with the annual number at just 1.3%, a sharp decline from November's 1.7% pace. The biggest catalyst for the decline is of course, the plunging price of gasoline, which dropped a whopping 6.6% from last month. Core CPI (minus food and energy) is at a higher 1.7% annual rate, down slightly from November's 1.8%. However, Core CPI is still comfortably below the Fed's target of 2%. The biggest impact on Core inflation came from a 1.2% decline in used vehicles and a 1.1% drop in apparel prices. Once again, inflation concerns can be safely ignored in the US for the foreseeable future. (VIEW LINK)
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