WASHINGTON (dpa-AFX) - Consumer prices in the U.S. crept slightly higher in the month of November, according to a closely watched report released by the Commerce Department on Friday.
The Commerce Department said its personal consumption expenditures (PCE) price index inched up by 0.1 percent in November after rising by 0.2 percent in October. Economists had expected prices to increase by another 0.2 percent.
The monthly uptick by the PCE price index came as prices for goods edged up by less than 0.1 percent, while prices for services rose by 0.2 percent.
The annual rate of growth by the PCE price index accelerated to 2.4 percent in November from 2.3 percent in October, slightly slower than 2.5 percent jump economists had expected.
The year-over-year increase by consumer prices came as prices for services spiked by 3.8 percent, more than offsetting a 0.4 percent decrease by prices for goods.
Excluding food and energy prices, the core PCE price index also edged up by 0.1 percent in November after climbing by 0.3 percent in October. Economists had expected core prices to rise by 0.2 percent.
The annual rate of growth by the core PCE price index in November came in at 2.8 percent, unchanged from October, while economists had expected an acceleration to 2.9 percent.
'November inflation was more benign than expected but the stickiness of some categories support the Fed's hesitancy to materially lower rates next year,' said Jeffrey Roach, Chief Economist for LPL Financial.
The inflation readings, which are preferred by the Federal Reserve, were included in a report on personal income and spending.
The report said personal income rose by 0.3 percent in November after climbing by an upwardly revised 0.7 percent in October.
Economists had expected personal income to rise by 0.4 percent compared to the 0.6 percent increase originally reported for the previous month.
Disposable personal income, or personal income less personal current taxes, also rose by 0.3 percent in November after climbing by 0.7 percent in October.
Meanwhile, the Commerce Department said personal spending climbed by 0.4 percent in November after rising by a downwardly revised 0.3 percent in October.
Economists had expected personal spending to grow by 0.5 percent compared to the 0.4 percent advance originally reported for the previous month.
Excluding price changes, personal spending rose by 0.3 percent in November after inching up by 0.1 percent in October.
With spending increasing by slightly more than income, personal saving as a percentage of disposable personal income edged down to 4.4 percent in November from 4.5 percent in October.
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