United States Inflation

United States

United States: Inflation driven down to multi-year low in December amid falling energy prices

January 16, 2015

In December, consumer prices decreased 0.4% over the previous month in seasonally-adjusted terms, which marked the biggest decline in six years. The print, which was in line with market expectations, followed the 0.3% drop recorded in November. December’s reading was mainly driven by a steep drop in energy prices, including gasoline.

Annual inflation fell from 1.3% in November to 0.8% in December, which marked the lowest level since October 2009. Meanwhile, core consumer prices, which exclude food and energy prices, were flat over the previous month, which was down from the 0.1% increase observed in November. The figure was below market expectations of another 0.1% increase. Annual average core inflation ticked down from 1.7% in November to 1.6% in December.

FocusEconomics Consensus Forecast participants expect inflation to average 1.3% in 2015, which is down 0.4 percentage points from last month’s forecast. For 2016, the panel expects inflation to average 2.2%.


Author:, Economist

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USA Inflation December 2014

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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