Consumer prices were unchanged in November as Americans paid less for cars and gasoline, while the 12-month inflation reading fell for the second straight month, which could give the Federal Reserve more room to help a still-weak economy, the Labor Department reported on Friday. The Labor Department said the Consumer Price Index was unchanged last month. Economists had expected an increase of 0.1 percent after a drop of 0.1 percent in October. Prices rose 3.4 percent in the 12 months through November. The newest numbers are off from the three-year high of 3.9 percent in September, and Friday's report backs the view that the spike in inflation is subsiding. Economists and investors see inflation cooling over the coming months, which could help convince the Federal Reserve to do more to bring down the country's 8.6 percent unemployment rate. Food prices rose 0.1 percent, while gasoline fell 2.4 percent. Outside food and energy, prices climbed 0.2 percent in November. In a sign that could give pause to policymakers still concerned about inflation, core prices rose 2.2 percent in the 12 months through November, up from 2.1 percent in October. The U.S. Federal Reserve has held overnight interest rates near zero since December 2008 and has bought $2.3 trillion in government and mortgage-related bonds in a further attempt to stimulate a robust recovery.
