Inflation ticks up in November: A bump in the road?

Inflation ticks up in November: A bump in the road?

12.20.2024

Inflation edged up in November, breaking a streak of steadying prices over the past few months. According to the latest Consumer Price Index (CPI) report, prices rose 0.3% in November, slightly higher than the 0.2% increase seen in each of the prior four months. On an annual basis, inflation climbed to 3.3%, compared to October’s 3.2%.1

This is the first time since mid-2024 that annual inflation has accelerated, reflecting challenges in certain categories. Core inflation — which excludes food and energy —followed a similar pattern, ticking up 0.3% month-over-month, while year-over-year held steady at 4.0%.

Key takeaways:

  • The index for shelter was the largest contributor to the monthly all items increase, accounting for nearly 40% of the increase, with the indexes for gasoline and food also contributing.

  • The index for all items less food and energy rose 0.3% in November after increasing 0.2% in October.

  • The energy index rose 0.6% in November following a 0.9% decline in October.

  • The food index increased 0.4% over the month after being unchanged in October.

What’s driving the increase

Housing costs continue to dominate the inflation picture, accounting for nearly 40% of the overall increase in November. Housing costs, including rents and owners' equivalent rent, have been a driving factor throughout the year.

Energy prices also made an impact, with gasoline prices rising 0.6% after three consecutive months of declines. This rebound added to the month’s upward pressure on inflation.

Food prices, meanwhile, rose by 0.4%, with the annual increase in this category now at 2.4%. Although food prices are climbing more slowly than they did in 2022, they remain a source of strain for many households.

A shift from October

The November CPI report contrasts to October's data, which had shown signs of leveling off. October's modest 0.2% rise in inflation, fueled by lower energy costs and slower growth in shelter prices, had sparked optimism about continued progress in the fight against inflation.

What it means for consumers

While the dramatic price surges of 2022 are fading into the past, inflation is still a reality. Wage growth has offered some relief, and 227,000 new jobs were added to the U.S. in November, but the cost of living remains elevated in many areas.2

Get financially happy.

Put your money to work for life and play.

Start here

1 U.S. Bureau of Labor Statistics, “Consumer Price Index Summary,” December 2024.

 

2 U.S. Bureau of Labor Statistics, “Employment Situation Summary,” December 2024.

 

RO4105443-1224

Recent Articles

The Currency editors

Staff contributors

The CurrencyTM, a publication from Empower, covers the latest financial news and views shaping how we live, work, and play. We keep you current on ways to plan, save, and invest for life.

The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. No part of this blog, nor the links contained therein is a solicitation or offer to sell securities. Compensation for freelance contributions not to exceed $1,250. Third-party data is obtained from sources believed to be reliable; however, Empower cannot guarantee the accuracy, timeliness, completeness or fitness of this data for any particular purpose. Third-party links are provided solely as a convenience and do not imply an affiliation, endorsement or approval by Empower of the contents on such third-party websites.

Certain sections of this blog may contain forward-looking statements that are based on our reasonable expectations, estimates, projections and assumptions. Past performance is not a guarantee of future return, nor is it indicative of future performance. Investing involves risk. The value of your investment will fluctuate and you may lose money.

Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.