For the second month in a row, consumer inflation increased in November. The Consumer Price Index increased to 2.7% in November, compared to 2.6% the previous month, on a year-over-year basis. Headline inflation also increased on a month-over-month basis, with prices increasing 0.3% in November, compared to 0.2% the previous month.
Core inflation, which strips out food and fuel, remained at 3.3% in November, the same as the previous month.
This report shows the difficulty of getting back to the Federal Reserve's stated policy goal of returning inflation back to 2%. Price growth has been getting sticky over the past few months and now we are seeing early signs that inflation is reaccelerating.
Tomorrow's release of the Producer Price Index will be another important indicator of what to expect in the future of price changes.