Gasoline prices lift US consumer inflation 0.4%

By Paul Wiseman Economic Indicators Associated Press

Gas prices headed even higher?

GasBuddy.com's Patrick DeHaan on the outlook for gas prices.

WASHINGTON (AP) — Surging gasoline prices pulled U.S. consumer inflation up 0.4 percent in November.

Continue Reading Below

The Labor Department said Wednesday that prices at the pump increased a sharp 7.3 percent after falling in October. Excluding volatile food and energy prices, so-called core consumer inflation rose a modest 0.1 percent in November.

Over the past year, overall consumer inflation is up 2.2 percent and core inflation is up 1.7 percent.

Inflation pressures have remained subdued even though the U.S. economy is gathering momentum. Economic growth has clocked in at an annual pace of 3 percent or better in each of the last two quarters for the first time since 2014. The unemployment rate is at a 17-year low 4.1 percent. But the tight job market has yet to generate significant wage growth, which would push inflation higher. Many businesses still fear losing customers if they raise prices.

More from FOX Business

Even though hiring has risen steadily, wage gains have been modest.

The Federal Reserve later Wednesday is expected to announce its third interest rate hike of 2017.

Continue Reading Below

Food prices were flat in November. Housing prices rose 0.2 percent. Air fares fell 2.4 percent. Apparel prices fell 1.3 percent, biggest drop since September 1998.

What do you think?

Click the button below to comment on this article.