On the Money with Gil Kuta

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Inflation Comes in Light Beating Forecasts and Easing Pressure on Families

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Inflation remained above the Federal Reserve’s target in November, but the latest data offered a measure of relief: prices rose about 2.7 percent, cooler than economists had expected and down from roughly three percent in September.

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Forecasters had anticipated inflation to come in closer to 3.1 percent, and both CNBC and CNN are admitting that inflation measures are exceeding expectations.

Core prices, which strip food and energy prices from the equation, also cooled since last year, remaining at 2.6 percent.

Meats, poultry, and fish prices in November were up 6.8 percent from last year, while egg prices, something Democrats have been complaining about, are down about 13.2 percent. Fruits and vegetables are up an almost negligible 0.1 percent. 

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Energy prices are also up, around 4.2 percent in the last year and 1.1 percent in the last couple of months. Gas prices, according to the report, are up almost one percent from a year ago, and fuel oil costs rose 11.3 percent. Electricity prices are also up from a year ago, up 6.9 percent, while utility gas service prices went up by 9.1 percent.

The report by the Labor Department was delayed due to the Schumer Shutdown, which skewed the September report and prevented an October report from being released altogether due to a lack of data. 

Furthermore, The Wall Street Journal made a cautionary note that the latest figures may still be skewed downward, as “economists cautioned that a technical fix the Bureau of Labor Statistics used to deal with collection issues caused by the [Schumer] shutdown may have biased the November figure downward, causing inflation to be understated.”

Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.

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