U.S. consumer price continues to increase in November

U.S. consumer prices continued to grow in November but at a slower pace.

Consumer Price Index (CPI), a main gauge of inflation, rose 0.2 percent in November on a seasonally adjusted basis, compared to a 0.4-percent growth in the previous month, said the Labor Department on Thursday.

On a year-on-year basis, the index increased 1.7 percent, up from October' s 1.6 percent increase.

Food index remained unchanged for five consecutive months by November, while the energy index grew 1.2 percent in the month, lower than October's 3.5 percent.

Excluding the volatile food and energy categories, the so-called core CPI went up 0.2 percent in November on a seasonally adjusted basis, and was up 2.1 percent over the year, the same increase in October.

The U.S. Federal Reserve on Wednesday raised the benchmark interest rate by 25 basis points, the first time in 2016, and indicated a faster rate hike pace next year.

According to the economic projections released by the Fed on Wednesday, Fed officials expected the personal consumption expenditure (PCE) index, an inflation indicator favored by the central bank, to grow 1.9 percent in 2017, close to the Fed's 2 percent inflation target.

Fed chair Janet Yellen said on Wednesday that there was no substantial upward pressure on inflation level, as there were no signs of extreme shortages of labor in the market.

She expected the inflation could move up to 2 percent target over the next couple of years, as the transitory influences of earlier declines in energy prices and prices of imports continued to fade. Endit