US Consumer Prices Unchanged In November

They were, however, offset by falling gasoline prices, leaving the overall CPI unchanged last month after a 0.2 percent increase in October. Within it, pulses and onions saw maximum increase of 58% and 53%, respectively.

But its decision came as the US Federal Reserve is poised later this week to make its first interest rate increase in almost a decade, while monetary policy in Europe is moving in the opposite direction. Inflation in this segment, which includes prices of personal care products and jewellery and certain business charges, continues to see a downward correction.

Seasonal fruits turned costlier further in November with inflation printing at 2.07 per cent. Inflation in meat and fish category was 5.34%; food and beverages – 6.08 per cent and that for non-alcoholic beverages it stood at 4.55 per cent.

Yet, the official pump price of petrol is N87 and figures provided showed that on the monthly average, Nigerians have continued to purchase petrol above the official rate in the period under review.

Core CPI – which strips out moves in the price of energy, food, alcohol and tobacco – rose to 1.2% from 1.1% in October. It has been in the negative zone since November previous year. “Given the ongoing weakness in worldwide food inflation, we expect upward pressures on local food inflation to be limited in the near-to-medium term”, the report said.

It said: “In November, the highest price increases were recorded in Liquid Fuel (kerosene), Fuels and Lubricants for Personal Transport due to shortages, Spare Parts as a result of replacement costs, and passenger transport groups”.

The RBI mostly tracks the CPI-based inflation for its monetary policy decisions.

Richa Gupta, senior director, Deloitte in India, a smaller fall in the WPI in November meant deflationary trend was easing. The interest rates have to come down to more comfortable levels for investors to benefit and for consumers to consider spending.

“It (negative WPI index for several months) is a matter of concern because now nominal growth in GDP is less than the real growth”.

Also, an increase in salaries of about 50 lakh government employees from January as per the recommendations of the seventh pay commission is also expected to push inflation higher. Economists said both sets of data released on Monday remained within expectations but the pressure on some food prices could be a worry and the government would have to keep a close eye on food supply management.