The Consumer Price Index (CPI) in the United States for November 2023 revealed a slight increase in consumer prices, continuing a trend of rising costs that has been observed since early 2021. In November, the CPI edged up by 0.1 percent on a seasonally adjusted basis, a rise that was somewhat lower than anticipated. Despite this modest monthly increase, the year-over-year comparison shows a more pronounced change, with the CPI climbing 3.1 percent compared to the previous year.

Since January 2021, the cumulative price increase has been significant, amounting to 17.2 percent. This has had a tangible impact on household budgets, particularly for average families, who are now facing higher expenses for the same basket of goods and services they purchased two years ago.

A key element of the November CPI report is the core CPI, which excludes the more volatile food and energy sectors. In November, the core CPI increased by 0.3 percent, slightly surpassing expectations. Over the past year, the core CPI has risen by 4.0 percent, consistent with the rise observed in October. The primary contributor to this increase has been the soaring cost of housing, especially rental prices. Shelter costs, which have risen by 6.5 percent, account for a substantial portion of the year-on-year increase in the core CPI.

The core CPI’s monthly and yearly increases were in line with estimates, suggesting a persistent trend in underlying inflation. This could support the Federal Reserve’s strategy of maintaining higher interest rates for an extended period to manage inflation pressures.

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