FXstreet.com (Barcelona) - Inflation at consumer level soared in the United States in November on the back of a sharp increase on energy, Core CPI posted the largest increase in ten months, according to data by the US Labor Department.
Consumer prices have risen 0.8% in November from October, somewhat above the 0.6% increase expected, and following a 0.3% increase in October. The Core CPI, which excludes food and energy prices rose 0.3%.
On the year Consumer prices have jumped 4.3%, pushed by a 21.8% increase in Energy prices, with transportation growing at a 9.6% pace and food and beverages 4.7% up. Excluding food and energy, CPI increased 2.3% on the year.
As expected, energy was to blame for most of the increase, with its 5.7% monthly rise eick made transport prices increase 2.9% and gasoline 9.3%. Energy had oalso some resposibility on the Core CPI increase through heating oil prices.
According to Ian Shepherdson, Chief U.S. Economist at High Frequency Economics, Ltd, this data does not have to make us think on a high inflation period ahead: No reason to think this will persist. Apparel was up 0.8%, biggest gain since Apr 99. The y/y trend remains downwards and the m/m data are erratic, but this might be the start of a firming induced by the falling dollar. Alternatively, it could just mean that strong Thanksgiving sales facilitated a bit of temporary margin-firming, which won't last. No big surprises elsewhere. We aren't worried by this report but markets won't like the headlines.