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.
Author: Carl Kelly, Economist