United States Inflation December 2016

United States

United States: Inflation accelerates in December

January 18, 2017

In December, seasonally-adjusted consumer prices increased 0.3% from the previous month. The result overshot the 0.2% increase in November and was in line with market expectations. Food prices were unchanged from the previous month again in December, while energy prices shot up. Inflation climbed to 2.1% in December from November’s 1.7%, the highest figure since May 2014. Annual average inflation was 1.3% in 2016 (2015: 0.1%).

Core consumer prices, which exclude food and energy prices, increased 0.2% from the previous month, which mirrored November’s result. Core inflation inched up from 2.1% in November to 2.2% in December.

Although the Federal Reserve targets an alternative measure of inflation called the personal consumption expenditures price index, it also follows the core inflation measure closely to judge whether inflationary pressures are increasing in the economy.

FocusEconomics Consensus Forecast participants expect inflation to average 2.3% in 2017, which is unchanged from last month’s forecast. For 2018, the panel also expects inflation to average 2.3%.

Author:, Senior Economist

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United States Inflation Chart

USA Inflation December 2016

Note: Year-on-year and month-on-month variation of seasonally-adjusted consumer price index in %.
Source: Bureau of Labor Statistics.

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