Nov US CPI Dips 0.3% on Yr; Gasoline Index and USD Down


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The U.S. Consumer Price Index (CPI) dipped 0.3% 
year-on-year in November, bringing the annual rate of inflation for the 
all-items index to 3%, according to data released this morning by the U.S. 
Bureau of Labor Statistics (BLS).

   It was the BLS's first report since August of an annual inflation rate below 
3%. The November figure was also beneath market expectations for a year-on-year 
inflation of 3.1%.

   The 3% annual inflation rate is closely watched by markets since it is well 
above the 2% annual target of the U.S. Federal Reserve. The annual CPI is one 
of the indicators the central bank uses for determining interest rates, which 
it cut three times this year, most recently on December 10, to boost a flagging 
jobs market despite inflation running higher than its target.

   The November CPI report issued by the BLS compares with September, since the 
agency did not issue an October report due to a federal government shutdown 
that month.

   The gasoline index within the November CPI fell to 3% from September's 4.1%, 
said the BLS. That aligned with the drop in U.S. pump prices for gasoline, 
averaging at $2.896 gallon versus the month-ago level of $3.077.

   The all-items less food and energy index, the so-called core inflation, was 
at 2.6% year-on-year in November, versus 3% recorded in September.

   Price increases for November were driven, among others, by natural gas and 
electricity, tobacco and smoking products, meats, poultry, fish, eggs, 
nonalcoholic beverages, used cars and trucks, and medical care services.

   In contrast, prices fell for airline fares, dairy and related products, and 
apparel, as well as for lodging away from home and recreation.

   Responding to the data, the December NYMEX WTI futures contract rose $0.45 
to $56.26 bbl. The U.S. dollar index decreased by 0.08 points to 98.32 against 
a basket of foreign currencies.




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