WASHINGTON — Consumer prices stayed flat in November, further evidence that inflation has cooled off.
Energy costs dropped for the second straight month, which offset higher prices that Americans paid for food, clothes and medical services.
Milder inflation offers some relief to consumers, who were hit earlier this year with a surge in gas and food prices. It also gives the Federal Reserve leeway to act further to boost the economy without fanning inflation.
“This is more good news for the consumer,” said Jim Baird, chief investment strategist at Plante Moran Financial Advisors. “The pace of inflation has clearly moderated in recent months.”
The consumer price index was unchanged in November, the Labor Department said Friday. That followed a 0.1 percent decrease in October.
Excluding volatile food and energy costs, so-called core prices rose 0.2 percent.
In the 12 months ending in November, prices rose 3.4 percent, below October’s 3.5 percent pace and the smallest year- over-year rise since April.
Core prices have risen 2.2 percent in the past 12 months, the most in more than three years. More expensive clothing and higher prices for rent have driven the core index up in that time.
Over the past 12 months, clothing prices have risen at the fastest pace in 20 years, largely because of higher cotton costs.
Still, core price increases have slowed recently. And cotton prices are half what they were a year ago, which should lead to lower clothing prices next year.
