Consumer Prices Increased 0.3% In November --- Third-Quarter GNP Rose At 2.5% Annual Rate; Inflation Appears to Ease
WASHINGTON -- Inflation eased a bit in November as consumer prices rose 0.3%, or at a 4.4% annual rate, the Labor Department said.</br></br>The price report came as the Commerce Department released its final calculation of the country's third-quarter economic growth, confirming that the economy during the period expanded at its slowest pace since the end of 1986.</br></br>The department estimated that the gross national product, the market value of all the goods and services produced in the U.S., grew at an inflation-adjusted annual rate of 2.5% during the period. The figure was slightly lower than the previous estimate of 2.6%, a revision most economists said was insignificant.</br></br>On the surface, the two reports seemed to mitigate some fears that the economy is growing too rapidly to hold prices in line. The increase in consumer prices was lower than many analysts expected, and, to most, reinforced a Labor Department report Friday that showed wholesale prices in November rose only 0.3% as well.</br></br>Moreover, the third-quarter GNP expansion was significantly slower than in the first and second quarters, when GNP grew at 3.4% and 3.0% respectively.