WASHINGTON, Dec 15: U.S. consumer prices were unexpectedly flat in November on a drop in energy costs and prices were also unchanged from the previous month when volatile food and energy costs were stripped out, defying forecasts of an up tick in core prices, a government report showed on Friday.

Economists polled by Reuters were expecting consumer prices and core consumer prices both to rise by 0.2 per cent.

Consumer prices and core consumer prices were also lower than expected over 12 months, a Labour Department report showed.

Consumer prices rose a less-than-expected 2 per cent over 12 months while core consumer prices rose 2.6 per cent from November a year ago.

Analysts were expecting a 2.2 per cent 12-month rise in consumer prices and a 2.7 per cent gain in core prices from November 2005.

Energy prices were down 0.2 per cent from October and were 3.8 per cent lower than November a year ago.

Transportation prices slipped 0.9 per cent in November on a 4.8 per cent decline in airline fares and a 0.7 per cent fall in new vehicle prices.—Reuters