There's still little pricing power in the U.S. economy. The November Consumer Price Index slipped marginally following a slight October decline. The decline compared with expectations for a 0.1% uptick. Consumer prices less food & energy were slightly firmer and rose 0.2% following two consecutive 0.1% upticks. The gain was firmer than expectations for a 0.1% uptick. Over several months, price inflation still looks contained. On a three-month basis, the CPI is up at a 0.8% annual rate and that's lower than its April peak of 6.2%. Core inflation was 1.5% over the last three months, down as well from its 3.1% July peak.

Energy prices led the CPI lower last month with a 1.6% decline (+12.4% y/y). Gasoline prices fell 2.4% (+19.7% y/y) following a 3.1% October drop. Fuel oil prices, however, rose a not seasonally adjusted 2.3% (19.7% y/y). Food & beverage prices rose 0.1% for the second consecutive month but the 4.4% y/y gain remained the strongest since early-2009. Strength continued in dairy products (8.7% y/y), meats (6.9% y/y) and cereal products (6.2% y/y).

For goods alone, core prices rose 0.1% after two months of decline. Apparel prices rose 0.6% (4.8% y/y) while motor vehicle prices fell 0.3% (+3.2% y/y). Household furnishings & operations prices were unchanged (0.8% y/y).

Core service prices rose 0.2% (2.1% y/y) for the fifth straight month. Education costs were strong and rose 0.5% (4.7% y/y) and medical care service prices also rose 0.5% (3.5% y/y). Shelter costs, which are 32% of the CPI, rose 0.2% but the y/y change held at 1.8% versus its 0.4% dip last year. Owners equivalent rent of primary residences, a measure not equivalent to other house price measures, edged up 0.1%. The 1.7% y/y increase is up from its lowest of no-change for all of last year. Public transportation prices rose 0.1% (5.3% y/y) while recreation costs also inched up 0.1% (0.3% y/y).

The chained CPI, which adjusts for shifts in consumption patterns, fell 0.1% (+3.2% y/y). Chained prices less food & energy was unchanged m/m (1.9% y/y).

The consumer price data is available in Haver's USECON database while detailed figures can be found in CPIDATA. The expectations figure is the AS1REPNA database.