December CPI Up 0.1%

Washington, DC, January 19–Consumer prices were off 0.1 percent in December, led by a drop in gasoline and heating oil prices, according to a Labor Department report. The core index, which excludes food and energy increased 0.2%.

Economists were expecting a flat CPI in December and an increase of 0.2 percent in the core index.

In 2004 the CPI increased 3.3 percent for its largest increase since a 3.4 percent rise in 2000. Core prices for the year increased a moderate 2.2 percent, the most since 2001’s 2.7 percent increase.

In December energy prices dropped 1.8 percent, including a 3.7 percent decrease in gasoline and a 4.8 percent drop in fuel oil costs. For all of 2004, energy costs increased 16.6 percent.

Food prices were unchanged in December and increased 2.7 percent in 2004.