Inflation Remains Within Targets in November

Companies and Brands

Published: December 14, 2012 8:46 am

Last Updated: December 14, 2012 8:51 am

The Bureau of Labor Statistics is out with its reading on inflation. In November, the Consumer Price Index was -0.3% on the headline, and the core rate, excluding food and energy, rose by 0.1%. Bloomberg and Dow Jones both had a consensus estimate of -0.2% on the headline and 0.2% for the core rate.

In November, energy prices were down by 4.1%, as gasoline prices were down by 7.4%. Food costs were up by 0.2%.

Here is what investors need to watch closely due to that 2.0% inflation mandate from the Federal Open Market Committee (FOMC): on a year-over-year basis, the nominal CPI was up by 1.8% and the annualized core CPI reading was 1.9% higher. The FOMC did leave a little wiggle room in the CPI reading, up to a sustained expectation of more than 0.5% higher than that 2.0% threshold.

Today’s inflationary data is not likely to be an serious market impact-generation tool, based on how close the numbers are to the consensus estimates.

JON C. OGG

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.