Inflation falls to 2.7% as slower housing and food increases offset a surge in electricity

Inflation in November fell to 2.7%, the Bureau of Labor Statistics said Thursday, a positive sign for consumers on its face.

Inflation in November fell to 2.7%, the Bureau of Labor Statistics said Thursday, a positive sign for consumers on its face.

However, November’s data was collected later than normal. The released figures may include significant holiday discounting, which could have put downward pressure on the overall figure.

"It’s possible that this does reflect a genuine drop-off in inflationary pressures," said Paul Ashworth, Capital Economics' chief North America economist.

"But such a sudden stop, particularly in the more persistent services components like rent or shelter, is very unusual, at least outside of a recession," he said.

Morgan Stanley's economists concurred, saying it's "difficult to draw strong conclusions" from the report. They warned that given the way the BLS processed the report without October data, inflation "could see reacceleration in December."