Consumer Prices Surge in November

Washington, DC, December 14, 2007–Consumer prices rose by the largest amount in more than two years in November, the Labor Department said.

The Consumer Price Index rose 0.8% last month, the largest increase in one month since a 1.2% surge in September 2005 after Hurricane Katrina.

Core inflation, which excludes energy and food, rose by 0.3% last month, the biggest increase in 10 months.

The 0.8% rise in consumer prices was worse than the 0.6% advance that economists had expected. With one month to go, inflation in 2007 is rising at an annual rate of 4.2%, far above the 2.5% increase in 2006.

Energy costs were up 5.7% in November, with gasoline prices rising by 9.3%, the biggest increase since May.