Prices of women's and men's outerwear rose particularly in the period between October and November 2016, according to the United Kingdom consumer price inflation: Nov 2016 report by the Office for National Statistics (ONS). But Fed Chair Janet Yellen told reporters that the central bank still saw rate increases coming at a gradual pace given that inflation was expected to rise only moderately over the coming year.
The Fed said in an updated set of forecasts that it foresaw the possibility of another three rate hikes in 2017.
This means that prices as measured by the all items CPI increased at an average rate of 0,02 percent from October 2016 to November 2016. That met the Bloomberg estimate.
Meanwhile, the so-called core CPI that excludes food and energy costs, rose 0.2% after ticking up only 0.1% in October. As measured by the PCE index, US inflation has undershot the central bank's 2% annual target for the past 4 1/2 years. November's headline CPI was up 1.7% from last November, and it was hotter than the 1.6% report from October's year-over-year reading.
The National Association of Home Builders/Wells Fargo Housing Market Index, a measure of homebuilder confidence, surged this month to its highest level since July 2005. Food prices were down 0.4% from November 2015 and energy prices rose 1.1% on the year. Rents were up 0.3% for the second straight time. Food prices were unchanged for a fifth straight month and food consumed at home declined for a seventh consecutive month. Major grocery store food group indexes were mixed in November, with four declines and two increases.
The overall CPI shot up 0.4 percent in October. That follows another large 7.0% increase the month prior. The cost of hospital services slipped 0.1 percent.
The 10-year breakeven rate was last 1.94 percent, down more than three basis points from late on Wednesday, Reuters and Tradeweb data showed.
The energy index rose in November, increasing 1.2 percent after a 3.5 percent rise in October. The index for natural gas, which had also increased 4 months in a row, fell 0.4 percent in November.
The percentage change in the average composite CPI for the 12-month period ending in November 2016 over the average of the CPI for the previous 12-month period was 15 percent, higher from 14.2 per cent recorded in October.