Lower gas costs held US consumer prices unchanged in November; inflation remains mild

WASHINGTON – U.S. consumer prices stayed flat in November, held down by falling gas prices. Inflation remains low across the broader economy, giving the Federal Reserve latitude to continue its extraordinary stimulus program.

The Labor Department says the consumer price index was unchanged last month, after dropping 0.1 per cent in October.

Gas prices declined 1.6 per cent in November to keep overall prices down. Over the past 12 months, consumer prices have risen just 1.2 per cent. That is significantly below the Fed’s inflation target of 2 per cent.

Excluding volatile energy and food costs, core prices rose 0.2 per cent in November from October and just 1.7 per cent over the past 12 months.

Prices for new vehicles and clothing fell. Those declines were offset by higher prices for home rentals, hotels, airfare, and restaurant meals.