John Lonski, president of the Lonski Group, joins Varney & Co. to discuss inflation and the latest employment data, and to address President Donald Trump’s claim that the stock market’s strength comes from tariffs.
Inflation remained high in November at a level well above the Federal Reserve’s target rate as policymakers consider potential rate cuts next year.
The Bureau of Labor Statistics announced this on Thursday consumer price index (CPI) – a broad measure of the cost of everyday goods such as gasoline, groceries and rent – ​​rose 0.2% in November compared to September, while rising year-over-year to 2.7%.
Both figures were cooler than expectations from economists polled by LSEG, who forecast a monthly increase of 0.3% and a year-on-year rate of 3.1%.
So-called core prices, which exclude volatile measures of gasoline and food to better assess price growth trends, rose 0.3% from the previous month and 2.6% from a year ago. The monthly figure was in line with economists’ expectations, while the annual figure was cooler.
The release of the November CPI inflation report was delayed by the 43-day government shutdown, which ended last month and impacted data collection, pushing the release date to December 10.
High inflation in recent years has put severe financial strain on most American households, who are forced to pay more for daily necessities such as food and rent. Price increases are especially difficult for lower-income Americans, because they tend to spend more of their already tight paychecks on necessities and have less flexibility to save.
Food prices rose 2.6% in November compared to a year ago, while monthly figures for the past two months were unavailable due to the shutdown. The index for eating at home was 1.9% higher than last year, while the index for eating away from home increased by 3.7%.
Prices for meat, poultry and fish rose 6.8% from a year ago, while egg prices fell 13.2% as supply shortages caused by an outbreak of bird flu eased. The fruit and vegetable index shows that prices have risen only 0.1% in the past year.
Energy prices increased by 4.2% compared to last year. Gas prices rose only 0.9% from a year ago, while heating oil costs rose 11.3%. Prices for propane, kerosene and firewood fell by 5.9%. Electricity costs rose 6.9% in November compared to last year, while utility service prices rose 9.1%.
This is a development story. Check back later for updates.
