Lower gasoline prices helped the consumer price index edge downward, to 3.1% in November.
Inflation declined slightly last month on the back of weaker prices at the gasoline pump and a broader easing of price pressures throughout the U.S. economy, experts said.
The consumer price index in November increased 3.1% from 12 months earlier, down from 3.2% in October, the U.S. Bureau of Labor Statistics said Tuesday.
« There is still a lot of disinflationary pressure in the system, » which will likely drive inflation even lower heading into 2024, said Sarah House, senior economist at Wells Fargo Economics.
The CPI is a key barometer of inflation, measuring how quickly the prices of things from fruits and vegetables to haircuts and concert tickets are changing across the U.S. economy.
The November reading is a significant improvement on the pandemic-era peak of 9.1% in June 2022 — the highest rate since November 1981. Prices are therefore rising much more slowly than they had been, and in some cases even falling outright.
« Inflation is still on the high side of what I think everyone would feel comfortable with, but it’s coming back down to earth steadily but surely, » said Mark Zandi, chief economist at Moody’s Analytics.
The U.S. Federal Reserve aims for a 2% annual inflation rate over the long term.
« I expect by this time next year we’ll be back within spitting distance of the target, » Zandi said.Gasoline prices declined again
As in October, gasoline prices were a big contributor to falling inflation in November, economists said.
