The Consumer Price Index (CPI) for November 2024 showed an annual inflation rate of 2.7%, marking a significant increase and surpassing expectations. This rise reflects the largest gain in consumer prices in seven months, primarily driven by higher costs in food and energy sectors. According to data released by the Labor Department, energy prices jumped 4.1%, while food costs rose 0.6% compared to the previous month. The November figures continue a trend of increasing consumer prices, with this being the fourth consecutive month of firm gains. Economists had predicted a rise to 2.7%, but the actual figures have raised concerns about sustained inflation levels, which can significantly affect consumer spending and economic stability. Senior economist at Wells Fargo, Sarah House, commented, ‘The strength in the inflation data shows that the pressures in the economy are not easing as quickly as we had hoped.’ In more specific terms, core consumer prices that exclude food and energy rose 0.3% in November, pointing to underlying inflation trends that remain robust. The increase in the CPI is prompting discussions among Federal Reserve officials about future interest rate policies and their potential impact on economic growth. September’s inflation rate was recorded at 2.5%, marking a consistent rising trend in inflationary pressures throughout recent months. Markets are reacting with caution, noting the balance needed to maintain economic growth while managing inflation expectations.
U.S. Inflation Rate Accelerates to 2.7% in November 2024
