Retail and food services sales adjusted for seasonal and calendar factors but unadjusted for prices on a monthly basis decline in November after a strong increase in October.
The Federal Reserve lifted its lending rate by 50 basis points and held out for more rate hikes in future in its quest to bring down inflation to 2.0%.
Consumer inflation slowed in November but the rising cost of shelter overwhelmed the decline in energy prices. Core inflation excluding food and energy also eased.
The Wholesale Price Index increase was driven by higher prices for services and the monthly increase in prices matched the rates in October and September.
Leisure & hospitality, government and healthcare job additions led the November job gains. Hourly wage rates rose 5.1% over the last twelve months and the unemployment rate held at 3.7%.
Despite multiple rate increases in 2022, consumer price inflation, the personal consumption expenditure and core PCE are still elevated and stubbornly high. The Fed is likely to moderate future rate increases but higher rates are likely to prevail longer.
The latest statement from the policymakers suggested more support for smaller rate hikes but also a need to keep lifting rates higher and sufficiently restrictive for the economy.
