United States: Inflation in December increases to highest level in a year
January 20, 2016
In December, consumer prices fell 0.1% over the previous month in seasonally-adjusted terms, which was down from the flat reading tallied in November. The print was in line with market expectations and mainly reflects lower prices for energy, including gasoline. Record-low oil prices are helping boost economic activity but keeping a lid on prices at the gas pump.
Inflation came in at 0.7%, which was up from November’s 0.5% reading and marked the highest result in a year. Core consumer prices, which excludes food and energy prices, increased 0.1% in December, which was slightly below November’s 0.2% reading and the 0.2% expected by the market. Annual average core inflation held at 1.8% for the fourth consecutive month.
Author: Carl Kelly, Economist