The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in November on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 0.5%.
Both food prices (down 0.1%) and gas prices (down 2.4) contributed to the flat inflation number. Core inflation – which strips out food and energy – was up 0.2% in November and now has increased 2.0% over the last 12 months. That’s right on the Federal Reserve’s target, although the Fed tracks a slightly different index.
Today’s numbers shouldn’t sidetrack the Federal Reserve’s expected move to slightly raise short-term interest rates after its meetings conclude Wednesday afternoon.
Holders of Treasury Inflation-Protected Securities and I Bonds are also interested in non-seasonally adjusted inflation, which is used to adjust the principal balance on TIPS and set future inflation-adjusted interest rates for I Bonds. In November, the CPI-U inflation index fell to 237.336, down 0.21% from October’s number.
For the current I Bond adjustment period (September 2015 to March 2016) inflation is running at -0.25%.
I have updated my Tracking Inflation and I Bonds page with these new numbers.