Annual consumer inflation rose to 2.7% in November, in line with expectations

U.S. consumer prices rose in line with analysts' expectations, according to the Bureau of Labor Statistics monthly report released Wednesday.

The Consumer Price Index inflation for November rose at an annual rate of 2.7% and 0.3% for the month, seasonally adjusted.

For the previous four months seasonally adjusted CPI inflation had risen 0.2% per month.

"Over the last 12 months, the all items index increased 2.7% before seasonal adjustment," the BLS said in a statement. "The index for shelter rose 0.3% in November, accounting for nearly 40% of the monthly all items increase. The food index also increased over the month, rising 0.4 percent as the food at home index increased 0.5% and the food away from home index rose 0.3%."

The inflation report was consistent with Dow Jones economists' expectations. Despite the uptick in inflation, financial markets overwhelmingly expect to see the Federal Reserve lower interest rates by another quarter point December. 18.

The BLS said energy prices were up 0.2% in November.

"The all items index rose 2.7% for the 12 months ending November, after rising 2.6% over the 12 months ending October," the BLS statement said. "The all items less food and energy index rose 3.3% over the last 12 months. The energy index decreased 3.2% for the 12 months ending November. The food index increased 2.4% over the last year."

Food prices increased 0.4% in November, compared with a 0.2% rise in October. Four of the six major grocery store group indexes were up in November.

Meats, poultry, fish, and eggs were up 1.7% over the month. Beef was up by 3.1% while eggs rose 8.2%.

Energy prices were up 0.2% in November after going unchanged in October. Gasoline was up 0.6% seasonally adjusted. Natural gas rose 1.0% while electricity fell 0.4% in November.