Core Inflation Remains Tame in December

Washington, DC, Jan. 14, 2011 -- U.S. consumer prices rose 0.5% in December, the largest increase since June 2009, mostly due to rising energy costs, the Labor Department reported Friday.

However, core prices, which exclude volatile food and energy cost inputs, rose 0.1%. Core prices are considered a good indicator of underlying inflationary pressures.

For all of 2010, the CPI decelerated to a 1.5% growth rate, down from a 2.7% increase in 2009.

The core CPI rose a record low 0.8% in 2010, down from a 1.8% increase in the prior year. 

Shelter costs rose 0.1% for the third consecutive month. The index for owners’ equivalent rent increased 0.1%.