United States: Inflation inches up in December
January 16, 2014
In December, consumer prices increased 0.3% over the previous month in seasonally-adjusted terms, which was up from the flat reading recorded in November. The result, which matched market expectations, reflects that substantially higher prices for energy were offset by lower prices for medical care and transportation.
Annual inflation increased from 1.2% in November to 1.5% in December. The monthly core inflation index, which excludes food and energy, inched down from 0.2% to 0.1% in December, which matched market expectations. Annual core inflation was unchanged in December (November: 1.7% year-on-year) and annual average core inflation also held steady (November: 1.8%).
FocusEconomics Consensus Forecast participants expect inflation to average 1.7% in 2014, which is down 0.2 percentage points from last month's forecast. For 2015, the panel expects average inflation to rise to 2.1%.
Author: Carl Kelly, Economist