US November inflation has slowed to zero

15.12.2015

The November Consumer prices (CPI) in the US was unchanged from the previous month, when there was noted a rise by 0.2%, according to the Ministry of Labour of the country.

The increase in price compared to November of the last year accelerated by 0.5% from 0.2% in October.

Analysts surveyed by Bloomberg, expected zero growth of the first indicator and an increase by 0.4 % of the second one.

The rise in prices has slowed amid falling oil prices and other energy sources.

The prices, excluding energy prices and foods, (Core CPI) rose last month 0.2% compared to October and by 2% in comparison with November of the last year. The dynamics of both indicators coincided with the consensus forecast.

The total annual inflation rate last month was the highest for the year, while the growth of Core CPI was the most significant since May 2014. However, the PCE Core index (Personal Consumption Expenditures, Excluding Food & Energy), which is closely monitored by Federal Reserve System (FRS) in assessing the risks of inflation, from April 2012 remains below the US Central Bank aimed level of 2%.

Cheap oil and gasoline help to maintain inflation below the target level, increasing the purchasing power of US consumers.

"Inflation will be difficult to recover to the target level. The downward movement in energy prices in recent time forms this scenario. There is a risk of further pressure from the dollar," - said a senior economist at Ameriprise Financial Inc (N: AMP), Russell Price.

The goods prices in the US fell in November by 2.8% compared with the same month of 2014, while the prices of services increased by 2.5%.

The price index for energy products (CPI Energy) fell 14.7% in annual terms in November, together with heating oil prices which collapsed by 31.4%.

According to the Automobile Association of the United States, gasoline in the country in December fell to $ 2.01 per gallon (3.79 liters), a minimum in six years.

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