Rising Cost of Shelter Fuels Increase in Consumer Price Index

Craig Bannister | December 12, 2023
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Led by the rising cost of shelter, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in November on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics (BLS) reported Tuesday.

Over the last 12 months, the all-items index increased 3.1 percent, before seasonal adjustment.

The “core inflation” index, which excludes the volatile less food and energy sectors, rose 0.3 percent in November, after rising 0.2 percent in October. The index for all items, less food and energy, is up 4.0 percent over the past 12 months.

The shelter index increased 0.4 percent in November, after rising 0.3 percent the previous month. The shelter index has increased 6.5 percent over the last year, accounting for more than two-thirds of the total increase in core inflation.

The shelter index was also the largest factor in the monthly increase in the index for all items, less food and energy.

The food index rose 0.2 percent in November, after rising 0.3 percent the previous month, and increased 2.9 percent from year-ago.

The energy index fell 2.3 percent in November, dropping 5.4 percent over the past 12 months.

Notably, the cost of motor vehicle insurance continued to skyrocket in November, rising 1.0 percent for the month and 19.2 percent from a year earlier.

Republican National Committee (RNC) Chairwoman Ronna McDaniel highlighted the higher cost of shelter Tuesday, in a statement reacting to the BLS report:

“Bidenomics is a failure. Since Biden took office, prices have risen by 17.4% as families continue to struggle paying their debts, saving for retirement, and affording rent. Americans know Democrats are to blame for one of the most expensive holiday seasons on record.”

In her statement, McDaniel referenced a Yahoo! Finance article reporting that a record number of American renters are spending at least one-third of their income on rent – and can’t afford to buy, because of the rising cost of new homes.

The business and economic reporting of CNSNews.com is funded in part with a gift made in memory of Dr. Keith C. Wold.