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The numbers: The cost of consumer goods and services rose modestly in November, but U.S. inflation more broadly was still quite low, with the economy facing little threat of building price pressures in the near future.
The consumer price index increased 0.2% last month, the government reported Thursday. Economists polled by MarketWatch had forecast a 0.1% increase.
The pace of inflation over the past year, however, was unchanged at just 1.2%
Before the pandemic began in March, consumer inflation was running at a much higher 2.3% rate.
Read: Jobless claims inflated, GAO finds
And: Why the inaccurate jobless claims report is still useful to investors
What happened: The cost of staples such as groceries and gasoline both declined in November, but mild price increases in a variety of goods such as clothes, home furnishings, alcoholic drinks and recreation nudged overall consumer inflation higher.
A separate measure of consumer prices that strips out food and energy, known as the core rate of inflation, also rose 0.2% last month. The core rate has risen 1.6% in the past year.
The cost of many goods and services tumbled early in the pandemic, rose during the summer and have since tapered off again. While the cost of some materials have climbed recently, inflation by and large has been quite muted.
Read: The 245,000 new jobs added last month is smallest since U.S. recovery began in May
Big picture: Inflation might move higher next year if coronavirus vaccines work and the economy returns closer to normal, but it’s no threat to investors or the economy right now.
See: MarketWatch Coronavirus Recovery Tracker
What they are saying? “There are few signs of meaningful and sustained inflation pressure at present, and this is likely to remain the case for some time to come,” said chief economist Richard Moody of Regions Financial.
Market reaction: The Dow Jones Industrial Average DJIA, -0.09% and S&P 500 SPX, +0.04% fell slightly in Thursday trades after a measure of layoffs known as jobless claims surged to a nearly three-month high.
