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Prices in this economy of ours rose 0.3% last month, according to the November consumer price index. That’s the highest number we’ve seen in seven months.
Meanwhile, annual inflation has been rising each month for three months: Annual inflation back in September was 2.4%, in October the number grew to 2.6%, and in November it grew again, to 2.7%. So shouldn’t we be a little freaked out by that?
Omair Sharif, president of research firm Inflation Insights, said he doesn’t think so.
There’s a lot of data that went into November’s inflation number, and some of it was a little wackadoodle. That could have thrown off the final number a little.
“Hotel rates today in the data in November went up. On an annualized basis they went up 45%,” Sharif said.
That on its own is a wild number.
“Similarly, on the negative side, if you wanted to rent a car or truck on an annualized basis, those prices declined by 31% today,” Sharif said.
If you tune these extremes out, he said, price inflation in November wasn’t 0.3% …
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