Yet another ugly inflation surprise
The November Consumer Price Index jumped 0.8% in November, more than the 0.6% that economists were looking for. That pushed the YOY rate of consumer inflation to 4.3% from 3.5% a month earlier -- the most since September 2005 (which was impacted by the hurricanes of that year).
The "core" CPI also rose more than expected -- 0.3% against a forecast of 0.2%. That pushed the YOY rate in core inflation to 2.3%; it hasn't been hotter than that since March. Increases were widespread. Housing costs were up 0.4% ... fuels and utilities were up 1.5% ... apparel was up 0.8% ... and medical care was up 0.4%.
Obviously, energy prices were a major factor in last month's gain. But even services inflation, ex-energy, was up 0.3% (or 3.3% YOY) ... and the overall core reading was hotter-than-expected.