WASHINGTON — Underlying inflation pressures in the United States rose in November, even as renewed weakness in gasoline prices kept overall consumer prices in check.þþThe Labor Department said on Tuesday that its so-called core Consumer Price Index, which excludes food and energy, gained 0.2 percent last month. It was the third straight month that the core consumer index increased by that much, and reflected rising rents and airline fares and higher costs for new motor vehicles and health care.þþIn the 12 months through November, the core C.P.I. rose 2 percent, the largest gain since May 2014, after rising 1.9 percent in October.þþInflation is also seen as heading higher in 2016 as the effects of last year’s sharp drop in oil prices fade. The dollar’s pace of appreciation is also expected to slow, which could ease some of the pressure on commodity prices.þþOther data on Tuesday showed that factory activity in New York State contracted for a fifth straight month in December as the sector continues to reel from dollar strength and continuing efforts by businesses to reduce an inventory bloat.þþHomebuilder confidence dipped in December, but remained at levels consistent with a gradual housing market recovery.þþ“Housing market activity continues to improve at a moderate pace,” said Jesse Hurwitz, an economist at Barclays in New York.þþLast month’s increase in the core C.P.I. was offset by falling gasoline prices, leaving the overall index unchanged after a 0.2 percent increase in October. But in the 12 months through November, the index increased 0.5 percent, the largest gain since last December.þþEnergy prices fell 1.3 percent last month. Gasoline prices dropped 2.4 percent, after rising 0.4 percent in October. The cost of electricity, however, increased 0.3 percent. Food prices dipped 0.1 percent, reversing the previous month’s gain.þþWithin the core C.P.I., rents increased 0.2 percent, after rising 0.3 percent in October. They were up 3.6 percent in the 12 months through November, reflecting rising demand for rental accommodation as more Americans shun homeownership.þþHealth care costs increased broadly; payments for doctor visits rose 1.1 percent. Apparel prices fell for a third straight month, while airline fares increased 1.2 percent. There were also increases in the cost of tobacco, education, communication and motor vehicle insurance.þþ“We think that the underlying strength of the domestic economy will continue to allow inflation rates to grind higher,” said Harm Bandholz, chief economist at UniCredit Research in New York.þ
Source: NY Times
