Inflation in the US rises to 2.7% in November

By The Opinion

Dec 11, 2024, 09:33 AM EST

In November 2024, Inflation in the United States experienced an increase of 2.7% in annual termsaccording to the latest report from the Consumer Price Index (CPI-U). This indicator reflects the change in the prices of a basket of goods and services consumed by urban households.

While the rise in inflation aligns with the expectations of economists surveyed by financial data firm FactSet, this increase still reflects a persistent pressure on prices, especially in key areas such as housing, food and energy.

One of the main reasons for this increase is the increase in housing prices.. The shelter index rose 0.3% in November, contributing almost 40% of the total price index increase. This increase in housing costs is one of the biggest concerns, as it directly affects the budgets of many families across the country.

Regarding food, a significant increase was also observed. The food index rose 0.4% in November. Food at home rose 0.5%, with key products such as meat, poultry, fish and eggs seeing notable increases. The price of beef rose 3.1%, while eggs increased by 8.2%. Although some products such as cereals and bakery products saw a decrease of 1.1%, the general trend is upward.

The energy sector, although more moderate, also had a small rebound. The energy index rose 0.2%, after remaining stable in October. However, in the last year, energy prices have experienced a drop of 3.2%, being gasoline one of the largest contributors to this decrease with a reduction of 8.1% in the last 12 months.

Despite these fluctuations, underlying indices, that is, prices excluding food and energy, also saw an increase. The “core” index rose 0.3%, remaining stable compared to the previous three months.

Sectors such as healthcare, used vehicles and home furnishings saw increases. The healthcare index rose 0.3%, while used and new vehicles increased 2% and 0.6%, respectively.

Although inflation remains lower than its peak of 9.1% in June 2022, pressures remain. For some experts like Lisa Sturtevant, chief economist at Bright MLS, the sharp increase in wages contributes to the persistence of high inflation.

“Since May 2023, wages have been rising faster than inflation, which is the main reason consumer spending has not slowed,” Sturtevant told CBS News.

However, moderate-income families continue to feel the effects of higher prices, which affects your purchasing power.

On the other hand, the Federal Reserve continues to face challenges in trying to reduce inflation to its 2% goal. Although interest rate cuts have been made, the last phase of the process to control inflation remains complicated.

The impact of economic policies, including tariffs and tax cuts that could be pushed by the next president, could also influence inflation projections for 2025.

With this data, it is critical that consumers and analysts keep close monitoring of upcoming changes in the economy, as monetary policy decisions and price fluctuations will continue to impact both households and the broader market.

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