U.S. CPI unchanged in November

U.S. consumer prices were unchanged in November, as the falling energy prices offset increases in other items excluding energy and food.

Consumer Price Index (CPI), a main gauge of inflation, was unchanged in November on a seasonally adjusted basis, following a 0.2 percent increase in October, said the Labor Department on Tuesday. On a year-on-year basis, the index increased 0.5 percent.

The energy index declined 1.3 percent in the month. Excluding the volatile food and energy categories, the so-called core CPI went up 0.2 percent in November on a seasonally adjusted basis, the same growth as in the previous two months.

The core CPI was up 2 percent from a year earlier, which hit the Federal Reserve's inflation target.

However, the core personal consumption expenditure price index, the Fed's favored inflation gauge, increased only 1.3 percent year on year in October, below the central bank's 2 percent inflation target.

The persistently low inflation has posed a challenge for Fed officials who are debating when to raise interest rates.

The Fed starts its two-day policy meeting on Tuesday. Investors widely expect the central bank to raise interest rate at this meeting, as Fed chair Janet Yellen and other officials have said the low energy costs and a strong U.S. dollar are transitory influences on inflation. Endit