In November, inflation ticked up once again.
The consumer price index increased 2.7% from a year ago as expected, higher than October’s 2.6% rate and the highest reading since July, when the rate was 2.9%.
Matt Colyar, an economist at Moody’s Analytics, told Business Insider before the new data was published that an acceleration wouldn’t be concerning because November’s increase would likely be due to housing inflation. Shelter inflation has mainly been cooling from its peak of over 8% in March last year but is still high compared to the pre-pandemic rate.
“If inflation were to accelerate because prices for cyclical, demand-driven things like hotels, vehicles, airfare, etc. jumped, then policymakers at the Federal Reserve will start to look at the US economy with a bit more caution,” Colyar said. “That shouldn’t be overstated, however. It takes more than one monthly data point to be a trend and we haven’t yet seen that kind of dynamic emerging.”
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