Consumer Price Index up 0.8%

The Consumer Price Index, a key indicator of inflation, increased 0.8% in November, marking the largest increase in two years, according to a Department of Labor report. The CPI rose 0.8% in October, marking the largest one-month increase since a 1.2% increase recorded in September 2005. Energy costs, which accounted for nearly 70% of the increase in CPI, increased 5.7% in November and are up 18.1% since November 2006. Consumer prices are 4.3% higher than they were during the year-ago period. Core inflation — which excludes energy and food prices — rose by 0.3% in November, marking the largest increase in 10 months and is up 2.3% since November 2006. In another report from the Federal Reserve, industrial production grew at a stronger-than-expected 0.3% clip in November, following a 0.7% decline in October, as mining and manufacturing output improved by 1.1% and 0.4%, respectively.