American November core inflation rate falls

Prices for consumer goods in November fell 0.2 %, the first drop since April, after remaining unchanged in October, the US Labor Department said today.

The core rate of inflation, which excludes volatile food and energy prices, fell 0.1% in November, following a 0.2% increase the prior month.

This is the first decline in the core rate since December 1982.

Both declines surprised Wall Street economists, who had predicted both the overall Consumer Price Index (CPI) to rise and the core rate to rise 0.1%.

On a year-on-year basis, consumer inflation has risen 1.8 %, while the core rate has risen 1.1 %.

Overall energy prices fell 3.0 % in November.

Food prices rose 0.4%, following a 0.6% rise in the prior month, and transportation prices fell 1.3%.