Inflation Continues to Cool, Ever So Gradually

Inflation Continues to Cool, Ever So Gradually

In November, the CPI rose 0.1% over the month, or 3.1% over the year, and core CPI rose .3% over the month, or 4.0% over the year. Both came in line with expectations. An uptick in the prices of used cars, shelter, and food offset the decline in gasoline prices. Shelter costs, which make up a large proportion of the CPI, have been a persistent source of inflation in recent months, largely due to insufficient housing supply. Today’s report is a continuation of an 18-month trend in steady but gradual disinflation.

With 3.1% inflation and 4.0% growth in average hourly earnings over the year, American workers continued to experience positive real wage growth. Wages have grown in real terms over the year since May, 2023, following a 25-month stretch of real wage declines during the pandemic.

Of course, what consumers notice is cumulative inflation over time, not changes from one month to the next. Energy prices have now risen 30.4% since before the pandemic, transportation 27.3%, food 24.4%, housing 20.3%, and the overall consumer price index 18.8%. The prices of education and medical care have grown just 8.6% and 7.8%, on average, since February 2020, reversing the long-term historical trend in which they have grown more quickly than other costs. 

Take a tour of the CPI report through our dashboard HERE.