On a 12-month basis, the index gained 3.1 percent, its highest level January 2012, surpassing the five-year record set in October. The unemployment rate is at a 17-year low 4.1 percent. The cost of rental accommodation rose 0.3 per cent, matching the increase in October. Food prices were unchanged for a second straight month.
The Fed chose to raise interest rates on Wednesday for the third time this year and expected to hike the rates three more times in 2018. Prices for final demand goods less foods and energy grew 0.3%.
Apparel prices dropped 1.3 per cent, the largest drop since September 1998. The trend continued in November, with prices falling 0.8% from a month earlier. Doctors who do respond are more willing to report self-paid prices than private-insurance prices, meaning the data the department collects aren't necessarily representative of the actual prices.
Certain categories that had shown weakness earlier in the year, including cellphone services and prescription drugs, increased in November.
The Federal Reserve, which begins a two-day policy meeting on Tuesday, is widely expected to raise benchmark interest rates this week despite internal disagreements about the threat of inflation.
The consumer-price index tends to run a little bit higher than the Fed's preferred measure of inflation, the personal-consumption index, reflecting different methods for calculating inflation. There are concerns among some policymakers that the factors behind the tame inflation could prove more persistent.
Price gains for services, however, slowed from the previous month, with margins for machinery and equipment falling as much as 1.9 percent.
"Fed officials who think inflation is critical for the economy's development and future success will not be heartened by today's reading on CPI inflation", said Chris Rupkey, chief economist at MUFG in NY.