The Fed Says "Low Energy Prices and Stunted the Strengthening Dollar"

U.S. citizens living costs remained stable in November, described the inflation was stillslightly below the goal of the Federal Reserve.

The consumer price index are unchanged after rising 0.2 percent in October, the Labor Department showed on Tuesday (15/12). Excluding food and fuel, the so-called core measure of 0.2 percent rise for the third month in a row.

The low price of crude oil since the global financial crisis in 2009 can keep inflationbelow the 2 percent target the Fed the Fed even the enhance the purchasing power of Americans. Policy makers, is projected to raise interest rates on Wednesday for the first time in nearly a decade, have said low energy prices and a stronger dollar is a temporary influence inflation.

"Lower energy Prices and a strong dollar will pressure continues to be the strength ofthe disinflasi," said Millan Mulraine, Deputy Head of research and strategy at TDSecurities USA LLC in New York. "Inflation will require some time to get back to the desired level Fed but are now moving in the right direction."

The level of the CPI matched the median estimate in a Bloomberg survey. Estimates ranged from a decline of 0.1 0.2 percent increase with percent.

The index rose 0.5 per cent in the 12 months that ended in November, after the results of 0.2 percent on an annual rate in the previous month. This figure is expected to rise in the coming months, reflecting the comparison easier by late last year andearlier in the year 2015, when oil prices plunged.

The size of the core CPI increased 2 percent from November last year, the largest since May 2001, after rising 1.9 per cent on the previous 12-month period.

Energy costs declined 1.3 percent from the previous month, the report showed.

Food prices dropped 0.1 per cent, driven by the prices of meat, chicken, fish and eggs are cheaper. The price of a used vehicle and Clothing also declined last month.

The costs for residence rises 0.2 percent from the previous month. Owners-equivalent rent, one of the categories designed to track rental prices, also rose 0.2 percent.

Medical care costs rose 0.4 percent after earlier 0.8 percent.

Higher prices for housing, including rental and hotel rates, helping to shore upinflation even as oil prices have plummeted in recent weeks and the strong dollardepresses commodity prices. The price of all goods decline 2.8 percent in November from a year earlier, while the cost of services rose 2.5 percent.

Fed officials have said they estimate inflation approaching their target as resistancefrom lower oil costs and reducing the dollar's rise. That may take longer becauseenergy prices continue to fall and the dollar continued to rise.

The Fed's preferred inflation index, which is the size of the Department of Commerce'spersonal consumption expenditure, which has not been in accordance with the objectives of the central bank since April.

Led by cheaper fuel, the cost of living and the labor market is more robust that helpto increase consumer spending, the biggest part of the economy. The average cost of a gallon of regular gasoline fell this month to the lowest level in six years from $ 2.01 and approached that level this week, according to AAA, the biggest US car group.

A separate report from the Labor Department also showed Thursday that hourly earnings adjusted for inflation rose by 0.1 percent from the previous month and 1.6 percent during the last 12 months.

The CPI is a measure of the widest of the three gauges of the Labor Department'sprice because it includes all goods and services. About 60 percent of the consumer price index includes payment for services from a medical visit to fare airline, movie tickets and rent.

Wholesale prices rose in November, the highest since June, as the increase in theprofit margin on service providers more than offset the cost of the cheaper goods.