Consumer Price Index Decreases in December as Inflation Moderates

Washington, DC, January 18, 2023--The Consumer Price Index (CPI) for All Urban Consumers declined 0.1% in December on a seasonally adjusted basis, after increasing 0.1% in November, the U.S. Bureau of Labor Statistics reports. The “all items” index increased 6.5% (not seasonally adjusted) for the 12 months ending in December--the smallest 12-month increase since the period ending October 2021.

The index for gasoline was by far the largest contributor to the monthly “all items” decrease, more than offsetting increases in shelter indexes. The energy index decreased 4.5% over the month as the gasoline index declined while other major energy component indexes increased over the month.

The food index increased 0.3% over the month, with the “food at home” index rising 0.2%.

The index for all items less food and energy rose 0.3% in December, after rising 0.2% in November. The shelter, household furnishings and operations, motor vehicle insurance, recreation, and apparel indexes all increased in December.

The all items less food and energy index rose 5.7% over the last 12 months. The energy index increased 7.3% for the 12 months ending in December, and the food index increased 10.4% over the last year. All of these increases were smaller than for the 12-month period ending in November.