Consumer prices increased marginally in November, with a decline in the gasoline index being offset by an increase in the shelter index, according to the latest Consumer Price Index (CPI). According to an analysis by the NAHB, the ongoing slowdown in inflation increases the likelihood that the Federal Reserve is done increasing rates.

The Fed’s ability to address rising housing costs is limited because increases are driven by a lack of affordable supply and increasing development costs. Additional housing supply is the primary solution to tame housing inflation. The Fed’s tools for promoting housing supply are limited at best.

The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.1% in November on a seasonally adjusted basis, after being unchanged in October. The price index for a broad set of energy sources fell by 2.3% in November as the decline in gasoline index (-6.0%) and fuel oil index (-2.7%) more than offset the increases in natural gas index (+2.8%) and electricity index (+1.4%).

In November, the index for shelter (+0.4%) was the largest contributors to the increase in the core CPI. Among the other indexes that rose in November include indexes for medical care (+0.6%) and motor vehicle insurance (+1.0%). Meanwhile, the indexes for apparel (-1.3%), household furnishings and operations (-0.4%), and communication (-0.6%) declined in November.