Inflation Tame In November

Inflation was benign in November. Consumer prices as measured by the personal consumption expenditures (PCE) price index rose 0.2% last month, lifted by gains in energy goods and services prices. The PCE price index increased 0.2% in October.

In the 12 months through November, the PCE price index increased 1.5% after advancing 1.4% in October.

Excluding the volatile food and energy components, the PCE price index edged up 0.1% last month, rising by the same margin for the fourth straight month. That lowered the annual increase in the so-called core PCE price index to 1.6% in November from 1.7% in October.

The core PCE index is the Fed’s preferred inflation measure, and had undershot the U.S. central bank’s 2% target this year.