The U.S. November consumer price index report was favorable, with overall CPI printing its biggest-ever monthly decline of 1.7% and core prices flat.
Interestingly, overall CPI was an even larger negative 1.9% prior to seasonal adjustment.
The latest price dips put CPI at a 1.1% rise overall and a 2.0% gain in core over the year, a clear moderation from the huge price gains of early 2008. However, price drops are not widespread and the latest declines mainly stem from the up-down moves in the erratic oil sector.
Driving CPI was a stunning record 17% drop in energy prices as all areas fell except electricity at plus 0.6%. Falling spot crude oil prices and a weak economy should ensure the energy sector does not sneak large price gains through in the immediate future.
— Market News International