US core consumer prices were surprisingly unchanged in November while incomes and spending rose modestly and durable goods orders outside transportation dipped, government reports showed today.
Core consumer prices, which exclude volatile food and energy costs, were steady in November after rising 0.2 per cent in October, the Commerce Department said. Analysts polled by Reuters were expecting core prices to increase 0.2 per cent.
The data is likely to give comfort to officials at the Federal Reserve, who have said inflation is at uncomfortably high levels. It was the first time since October 2002 that core consumer prices were unchanged from month to month.
The last time there was a drop in core prices was in September 2001, when core prices dipped 0.5 per cent. Core prices rose 2.2 per cent from November a year ago, a slower pace than the 2.4 per cent 12 month rise in October. Policy-makers are thought to want the rise in core prices to stay between 1 per cent and 2 per cent over 12 months.