Inflation ticked slightly higher in November, as the Consumer Price Index rose 0.3% from October. On an annual basis, inflation is running at ab out 2.7%, just above the Federal Reserve’s target of 2%.
When the volatile food and energy sectors are removed, the CPI increase remained the same, suggesting those two sectors are coming down. Once again, it was the cost of shelter that accounted for 40% of the increase.
The cost of shelter rose 0.3% in November, down from October’s 0.4% rise. For the year, the cost of shelter is up 4.7%.
The cost of rent increased 0.2%, a slower increase than October’s 0.3% rise. The owner’s equivalent of rent also rose 0.2%, half of October’s increase.
Car ownership costs, one of the main drivers of inflation, continued to moderate in November. The cost of insurance rose just 0.1% last month but is up 12.7% over the last 12 months.
Auto maintenance and repair costs rose 0.2% and are up 5.7% year-over-year.
Food costs rose
After several months of stability, grocery prices jumped last month. Food consumed at home, the category for grocery prices, rose 0.5% last month following a more modest 0.1% increase in October.
The cost of cereal and bakery products fell by 1.1% and the prices of dairy and related products dipped by 0.1%. All other food sectors were higher last month.
Food consumed away from home, the category for restaurant prices, rose 0.3% after a 0.2% gain in October. Restaurant prices are up 3.6% over the last 12 months while grocery prices have increased by 1.6%.