One chart displays the inflation breakdown for November 2024.

• Inflation isn't accelerating, but remains persistently too high, economists said.
• Inflation for groceries, gasoline and new vehicles increased.

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"Zandi stated that there isn't a specific smoking gun indicating the issue, but rather it's a broad-based problem that's prevalent everywhere."

That said, there are reasons for optimism, according to economists.

Zandi stated that consumers can find comfort in the fact that the economic trends driving inflation, including moderate wage growth in the labor market, remain positive.

Despite the recent inflation "revival," we still believe we're on the overall path of disinflation, according to Joe Seydl, a senior markets economist at J.P. Morgan Private Bank.

A 'bounce back' in food prices

The Federal Reserve aims for a long-term inflation rate of approximately 2% using a different inflation gauge than the CPI, which is the Personal Consumption Expenditures Price Index (PCE).

Despite the general easing of price pressures across the U.S. economy, there have been some recent challenges.

During the month, egg prices increased by approximately 8%, and they have risen by 38% in the past year, as per CPI data.

"Zandi stated that there was a resurgence in food prices, which she attributed to the avian flu outbreak, particularly the persistent strength of egg prices."

Cars and housing are other trouble spots

Seydl stated that transportation, health care, and shelter have been problematic areas.

Car insurance prices increased by 13% year-over-year, while new vehicle prices rose by 0.6% from October to November, according to CPI data.

The shortage of semiconductors in 2021 caused car prices to spike, resulting in a severe vehicle shortage and high inflation. However, prices eventually fell as dealers replenished their inventories. Currently, some price volatility is expected as the market adjusts to a new equilibrium, according to Seydl.

The cost of replacing vehicles after a car accident increases when car prices are high, and insurers must obtain regulatory approval before raising consumer premiums.

According to Seydl, airline prices are currently at a "bottom," with actual fares roughly the same as before the Covid-19 pandemic, as indicated by CPI data.

"From 2019 to now, we haven't experienced much airfare inflation, but there has been a lot of volatility, according to Seydl."

Labor costs are the primary input for health care inflation, he said.