The Consumer Price Index had its biggest one month drop ever. The CPI numbers came in this morning down 1.7% for the month, exceeding expectations. The core rate, excluding energy and food, remained unchanged. On a year over year basis, inflation is now running just over 1.0%.
Here is a breakdown of the inflation benchmark to show you where costs are rising and falling most. For November, energy prices were down a record 17.0% down and are now down 13.4% from one year ago.
- CPI: Down -1.68%
- Ex Food & Energy: Up +.02%
- Food: Up +.16%
- Energy: Down -16.98%
- Housing: Down -.10%
- Apparel: Up +.27%
- Transportation: Down -9.75%
- Medical Care: Up +.23%
- Recreation: Up +.01%
- Education & Communication: Up +.22%
- Other Goods & Svcs: Down -.03%
The unchanged core should give the Fed confidence that deflation is not the critical issue today and futures are pointing up. Some of the Dow stocks up over 1% in the pre-market include Boeing , 3M , Caterpillar , General Electric , General Motors , JP Morgan Chase , and Merck .
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