Consumer Prices, Housing Starts Both Rise in November

The prices U.S. consumers paid for goods rose slightly in November, a government report said Tuesday.

The Labor Department said that its consumer price index increased 0.1%, while its core rate, which excludes the prices of volatile food and energy, rose 0.2% during the 11th month of the year.

In another report by the federal government, the Commerce Department said that housing starts rose 2.4% in November to an annualized rate of 1.697 million units.

The CPI is a gauge of inflation, and analysts said that November’s CPI showed that inflationary pressure was “subdued,” according to Bloomberg. The lack of inflation will allow the Federal Reserve to maintain its aggressive stance on stimulating the economy.

The housing market has been a pillar of strength for the economy during its slow comeback. The number increased housing starts can be a boost to flatbed trucking companies that deliver construction materials and dry van freight firms that carry home goods to newly purchased houses.

Low mortgage rates, according to market observers, are one of the drivers behind the current boom in the housing market, Bloomberg reported.

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