November’s CPI Report

This morning, the government released the latest CPI report. For November, inflation rose by just 0.019%. That’s the lowest since March. Obviously, falling energy prices played a big role. Gasoline prices fell 4.2% last month. Over the last year, CPI is up 2.532%. That’s not too scary.

November is a good reason why we also want to look at “core” inflation which excludes food and energy. Last month, core inflation rose by 0.209%. In the last year, it’s up 2.242%.

Here’s the real Fed funds rate based on core inflation:

Posted by on December 12th, 2018 at 12:40 pm


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