U.S. inflation measure rose by more than forecast in November
A measure of prices paid by U.S. consumers rose in November by more than forecast as costs of transportation services and apparel accelerated, though inflationary pressures elsewhere remained subdued as the pandemic continues to curb activity.
The consumer price index rose 0.2% from the prior month after no change in October, Labor Department data showed Thursday. Compared with a year earlier, the gauge rose 1.2%. The core index, which excludes volatile food and energy costs, also advanced 0.2% from the prior month and increased 1.6% from a year earlier.
The median forecast in a Bloomberg survey of economists called for a 0.1% gain in both the CPI and core measure.
While services costs picked up last month by the most since July, a broadening of inflation will likely take time as the nation awaits the distribution of Covid-19 vaccines. Currently, merchants have limited leeway to charge customers more as unemployment remains elevated and a surge in infections prompts some states and cities to reimpose restrictions on business.
The report showed the cost of transportation services jumped 1.8%, the most in four months. Airfares rose 3.5% after a 6.3% increase a month earlier, and motor vehicle insurance advanced 1.1% in November. Lodging away from home was 3.9% more expensive than in October, the largest gain since 2005.
