November 2023 Inflation: Energy Prices Fall, Housing Costs Remain Sticky

Inflation in the US declined slightly in November 2023, with the consumer price index (CPI) increasing by 3.1% from the previous year, down from 3.2% in October. Gasoline prices were a major contributor to falling inflation, dropping 6% in November. The core CPI, which excludes volatile energy and food prices, remained flat at an annual rate of 4%. Shelter inflation, the largest household expense, decreased slightly in November. Economists expect inflation to continue to decrease heading into 2024, driven by disinflationary pressures in the system. The Federal Reserve aims for a 2% annual inflation rate over the long term.