An inflation report is published by the government, typically by the central bank, and provides detailed information on current inflation rates. It includes data on price changes for various expenditure categories like housing, food, and transportation, and identifies factors driving inflation.
A Consumer Price Index (CPI) report measures the average change in prices paid by urban consumers for a market basket of goods and services, providing a key indicator of inflation. Published monthly by national statistical agencies, it includes data on categories like food, housing, and transportation. The CPI report helps policymakers, economists, and investors understand economic trends and make informed decisions.
Inflation November 2024
In November, the Consumer Price Index for All Urban Consumers increased by 0.3%, up from 0.2% in the previous four months. Over the past year, the index rose by 2.7%.
- Overall Inflation: The Month over Month inflation increased by 0.3% in November. While, Year-over-year, the CPI rose by 2.7%.
- Shelter Costs: Shelter costs increased by 0.3% in November, accounting for nearly 40% of the overall CPI increase.
- Food Prices: Food prices rose by 0.4%, with food at home increasing by 0.5% and food away from home rising by 0.3%.
- Energy Prices: Energy prices increased by 0.2% in November, after being unchanged in October. Over the past 12 months, the energy index decreased by 3.2%.
- Core Inflation: Excluding food and energy, core inflation increased by 0.3% in November, the same as in October. Year-over-year, core inflation rose by 3.3%.
Source: BLS report
Inflation Trends Over the Past Year
Overall Inflation: The Consumer Price Index rose by 2.7% year-over-year.
Shelter Costs: Shelter costs increased by 4.7% over the past 12 months.
Food Prices: The food index rose by 2.4%, with food at home up 1.6% and food away from home increasing by 3.6%.
Energy Prices: The energy index fell by 3.2%, with gasoline down by 8.1% and fuel oil dropping 19.5%.
Core Inflation: Excluding food and energy, core inflation increased by 3.3% over the past year.
Other Notable Increases: Motor vehicle insurance rose by 12.7%, medical care by 3.1%, education by 4.2%, and recreation by 1.5%.
Impacts of October Inflation Data on Market
Market participants are closely watching the Fed’s next moves, with some expecting a quarter-point rate cut in December.
The S&P 500 index showed positive movement in pre-market trading following the inflation data release. This rise suggests that investors are optimistic about future economic conditions and corporate earnings, despite the inflationary environment.
The release of the November 2024 inflation data led to a decline in bonds, a rise in gold prices, and an increase in S&P 500 pre-market trading. These movements reflect investor strategies to navigate the economic landscape shaped by the latest inflation figures.
