Inflation continued to ease in November as a steep drop in gasoline prices helped to offset the rising cost of housing, medical care and new cars.
The Labor Department reported Tuesday that the consumer price index, a broad measure of the price of everyday goods, including gasoline, groceries and rent, rose 0.1% in November from the previous month, slightly more than expected.
Prices climbed 3.1% from the same time last year, which is in line with estimates by Refinitiv economists, and down from the 3.2% recorded in October.
"Falling inflation does not mean that prices are falling. In fact, prices for just about everything are still higher than they were before the pandemic," said Lisa Sturtevant, chief economist at Bright MLS.
Here is a breakdown of where Americans are seeing prices rising and falling the fastest as they continue to wrestle with sticker shock.
INFLATION RISES 0.1% IN NOVEMBER, SLIGHTLY MORE THAN EXPECTED
Housing costs were the biggest driver of core inflation last month. Rent costs rose 0.5% for the month and are up 6.5% from the same time last year.
Rising rents are concerning because higher housing costs most directly and acutely affect household budgets. Another data point that measures how much homeowners would pay in equivalent rent if they had not bought their home climbed by 0.5% from the previous month.
"Housing costs, in particular, are weighing on many individuals and families," Sturtevant said. "Rent pressures have started to ease in some regions, which will eventually be reflected in the CPI numbers. Home prices, however, are still on the rise in much of the country."
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Food has been one of the most visceral reminders of red-hot inflation for Americans. In November, the cost of groceries increased for the eighth straight month.
Grocery prices climbed 0.1% over the course of the month, according to the data. On an annual basis, prices remain up 1.7% compared with the same time last year.
Consumers paid more for a number of staples in November, with the price rising for eggs (2.2%), breakfast cereal (0.8%), apples (0.4%), citrus fruits (3.2%), potatoes (4.6%), carbonated drinks (1.5%), coffee (0.4%) and butter (4.3%).
There were some substantial declines in food prices last month. The cost of bread, beef and veal, pork, ham, chicken, bananas and bread fell last month.
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Energy prices dropped substantially in November for the second straight month. Prices fell 2.3% over the course of November, including a 6% drop in gasoline.
Gasoline costs had previously been trending upward following major supply cuts by OPEC+ and turmoil in the Middle East.
The average cost of a gallon of regular gasoline fell to $3.36 last month, according to AAA. Prices have continued to fall since then, with the average cost hovering around $3.13 on Tuesday.
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There was some good news for Americans looking to buy a new car in November.
The cost of new cars and trucks inched lower last month, falling 0.1%. New vehicle prices remain up 1.3% year over year.
But used car and truck prices – which were a major component of the inflation spike last year – unexpectedly jumped 1.6% in November amid the UAW strike against Ford, Stellantis and General Motors.
Prices remain down 3.8% compared with the same time last year.
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Airline fares continued to fall in November, dropping about 0.4%. The cost of tickets is down about 12.1% when compared with last year, according to the data.
