November Inflation

 Inflation for November was announced yesterday lower than "expected" causing an initial jump in markets, which was almost immediately scaled back. 

Headline CPI was up "only" 0.1% for the month, but... averages are nasty critters.  Here's what lies beneath (month over month figures):

Headline = +0.1%

Shelter (32% weight in the index) = +0.6% 

Food (14%) = +0.5%

Education (5%) = +1.0%

All of the above are zooming higher, much faster than anticipated. 

So, how did we end up with a mere +0.1%? Once again, energy (ie gas at the pump, mostly) came to the rescue with an oversize price drop.

Energy (8%) = -1.6%

For some reason unknown to me medical care prices downshifted as well

Medical Care (7% ) = -0.7%

Finally, commodities other than food and energy (21% weight) came in at -0.5% almost entirely because used cars dropped by -2.9%.

In sum, inflation is easing but certainly not across the board. When you scratch the surface inflation is very, very strong and worrisome.