US consumer prices rise more slowly less than expected in November

The cost of living in the US rose less than expected in November despite a sharp jump in energy costs.

Consumer prices in the States increased by 0.2% month-on-month (1.7% year-on-year), according to the Bureau of Labor Statistics.

Economists had pencilled in a rise of 0.2% on the month and 1.8% year-on-year.

Food prices were flat in comparison to October, while energy prices jumped 1.2%.

Core prices advanced at a 0.2% month-on-month (2.1% year-on-year), slightly less than the 2.2% rise which economists had been expecting.

Prices of used cars and trucks increased by 0.3% on the month and those for shelter by 0.3%, although it was transportation costs which rose by the most, gaining 0.4%.

The cost of apparel on the other hand declined by 0.5% on the month and that of medical care commodities by another 0.5%.

"Core goods inflation is a bit softer than we had expected at this point and is keeping core CPI from accelerating at a faster pace, in our view. As labor markets continue to improve and slack diminishes further, we expect core services CPI to continue to drive inflation higher. We believe the direct drag from the 2014 decline in energy prices and dollar strength has abated and maintain our view that these base effects will help CPI to firm up further in 2017. The core goods readings present some downside risks to our view," Blerina Uruci at Barclays Research said.