Consumer Price Index and Inflation

SOURCE www.cnbc.com
Consumer prices rose at a faster annual pace in November, with a 12-month inflation rate of 2.7%. The Federal Reserve is expected to lower its benchmark rate in response to the inflationary pressures.

Key Points

  • Annual inflation rate of 2.7%
  • Core CPI at 3.3% on an annual basis
  • Federal Reserve expected to lower benchmark rate
  • Inflation driven by shelter costs and food prices

Pros

  • Provides insight into current inflation rates
  • Highlights the impact of inflation on various sectors

Cons

  • Inflation remains above the Fed's 2% annual target
  • Some policymakers are frustrated with inflation's resilience