US CPI ticks lower to 3.1% year-on-year in November

The cost of living in the U.S. drifted a tad lower in November amid another decline in energy prices.

According to the U.S. Department of Labor, in seasonally adjusted terms the country's Consumer Price Index edged up by 0.1% month-on-month.

In annual terms on the other hand, the rate of change ticked lower by one tenth of a percentage point to 3.1%.

Food prices rose by 0.2% on the month but those for energy fell by 2.3%.

Annual core CPI, which excludes food and energy, was steady in comparison to the prior month at 4.0%, and 0.3% higher on the month.

Used car and truck prices jumped by 1.6% versus October while those of medical care commodities were up by 0.5% and those of medical care services by 0.6%.

Shelter prices meanwhile increased by 0.4%.

"The slightly stronger 0.28% m/m rise in core consumer prices in November suggests the Fed may be able to hang onto its tightening bias for a little longer, but sharper declines in inflation are still likely to result in rates being cut aggressively next year," said Andrew Hunter, deputy chief U.S. economist at Capital Economics.

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