Consumer Price Index: Low Inflation Shows The Fed Should Try A Different Tool

The Consumer Price Index (CPI) was unchanged in November. Declines in energy prices have been dragging the headline number lower. The Core CPI, which excludes food and energy, was up 0.2% for the month. Most of the increase in the Core CPI was driven by higher prices for shelter and airline fares. For the past 12 months, the headline index was up 1.2%. Gasoline prices dropped 5.4%, food prices were up 1.2%, shelter was up 2.4%, and medical care services rose 2.6%. For those who don't trust gover...