Consumer Prices Flat In November, Annual Inflation at 3.4%

Posted on December 16, 2011

The Bureau of Labor Statistics reported that consumer prices were flat in November. Annual inflation has moderated to 3.4%.

This report shows that prices for food and services continue to rise, albeit modestly while energy prices tumble for the second straight month. The consumer also paid less for durable & non-durable goods in November, for which prices have dropped for the last 2 months. 

I expect consumer prices to gradually decline as the US slowly moves toawrds a mild recession in the 1st or 2nd Quarter of 2012.

Consumer Price Index
  Previous Consensus Actual
CPI – Month-to-Month -0.1% 0.1% 0.0%
CPI – Year-to-Year 3.6%   3.4%