December Consumer Prices Rose 0.3%

Washington, DC, January 11, 2024-The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in December on a seasonally adjusted basis, after rising 0.1% in November, the U.S. Bureau of Labor Statistics reported. 

Over the last 12 months, the all-items index increased 3.4% before seasonal adjustment.

The index for shelter continued to rise in December, contributing over half of the monthly all items increase. The energy index rose 0.4% over the month as increases in the electricity index, and the gasoline index more than offset a decrease in the natural gas index. The food index increased 0.2% in December, as it did in November. The index for food at home increased 0.1% over the month and the index for food away from home rose 0.3%. 

“The latest inflation data was mixed,” reports The Brew. “U.S. consumer prices increased by a slightly higher-than-expected 0.3% in December, mostly due to rising shelter costs. But with volatile food and fuel prices stripped out, the ‘core’ inflation measure came in at 3.9% in the year through December, down from 4% in 2022 and the first time that metric’s been below 4% since May 2021. The data suggests that despite a “meh” December, inflation is still on track to cool down. We’ll find out soon if inflation’s chilled enough for Fed officials to cut interest rates this year.”